Can accumulate Sesa Goa at current levels: Avinash Gorakshekar, Anagram Capital Ltd

Avinash Gorakshekar, Head of Research, Anagram Capital Ltd, in a chat with ET Now talks about Sesa Goa.

What would your call be on Sesa Goa?

From a longer term perspective, Sesa Goa definitely has a very solid business model. In the shorter term, issues like the government putting up a higher duty on iron ore or banning iron ore exports have been affecting the stock in the immediate short term. But if you look at the balance sheet and the capital structure for Sesa Goa and the iron ore prices prima-facie, looking at the global uptick, our sense is that Sesa Goa would definitely continue to do well.

In fact it is a cash rich company and if iron ore reserves are going to be repletioned, I would not be negative on the stock. In fact every decline for this stock is an opportunity to acquire. Over the next 12-15 months, I am expecting iron ore prices to remain firm. So definitely one can accumulate at current levels.