Expect Sesa Goa to touch 300 in short term: Ashish Maheshwari

Ashish Maheshwari, Director, Globe Capital Market Ltd. in an interview with ET Now talks about Sesa Goa and Cairn India.

What’s the view with regards to Cairn India and Sesa Goa?

Cairn India, the stock has corrected quite a bit on this news, that open offer is going to be at 355. Earlier market was expecting that open offer will be 405 and as soon as the news of non-competing fee payout broke out, this stock has corrected but this is just a knee-jerk reaction. Those who have bought this stock at intraday, etc., are liquidating their positions and once this stock corrects to 325 odd levels, again we are going to see good buying in this stock because fundamentally there is nothing wrong in the company.

You are going to see a very good management also onboard where they can put a lot of money in fuelling the growth of Cairn India, so I am optimistic 325 will be a good level to enter into this stock.

Now if we talk about Sesa Goa, they are already seeing a 6000 crores cash, so 20% stake is going to be through them but again besides this they are also facing another problem is that 26% fee that government is talking about from their core iron ore business, because of this, this stock is correcting and the investment in form of a non-core business has again something, which fund managers would not like the idea, so I am expecting this stock will touch a 300-odd levels in short term.