KIM ENG India maintains 'Sell' on Sesa Goa
KIM ENG India has maintained a 'Sell' call on Sesa Goa following increase in export duty on iron ore.
By ET Bureau |
MUMBAI: KIM ENG India has maintained ‘Sell’ call on Sesa Goa following increase in export duty on iron ore.
"Exports will account for 90 per cent of Sesa Goa (SESA) FY11F sales volume of 25 million tonnes. The government has increased export duty on iron ore ‘fines and lumps’ by 5 per cent of the selling price to discourage exports.
We downgrade our FY11F EPS by 12 per cent to Rs 31. We lower our target price by 10 per cent to Rs 270 per share (based on EV/EBITDA 5x FY11F) and maintain SELL,” the report said.
"Exports will account for 90 per cent of Sesa Goa (SESA) FY11F sales volume of 25 million tonnes. The government has increased export duty on iron ore ‘fines and lumps’ by 5 per cent of the selling price to discourage exports.
We downgrade our FY11F EPS by 12 per cent to Rs 31. We lower our target price by 10 per cent to Rs 270 per share (based on EV/EBITDA 5x FY11F) and maintain SELL,” the report said.
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