Buy Sesa Goa at lower levels: Prakash Diwan, Altamount Capital Management

In a chat with ET Now, Prakash Diwan, Director, Altamount Capital Management, shares his views on the Sesa Goa stock:

ET Now: There is a news on Sesa Goa and the Nifty balancing buying that could come about owing to the merger with Sterlite. What are you doing with Sesa Goa?

Prakash Diwan: We have seen on Tuesday last week when the Sterlite stock was taken off trading.

The imbalance had created a huge spike on the Sesa counter. We saw some of the auction prices higher than 210 itself, which was a mismatch.

Given the fact that the stock corrected, it will start getting into that value zone. I would recommend very clear buy on Sesa at lower levels, current levels, as well as levels slightly lower than this as things would start looking up on the mining side.

The government also started to realise that that one sector could change things on the current account deficit not in singular proportions. However, it is a big contributor to that and Sesa Goa would be one of the key beneficiaries. Even the metal pack has got rebound. It will definitely augur well for the kind of demand that this company has for its products.