KIM ENG recommends ‘Sell’ on Sesa Goa

MUMBAI: KIM ENG Securities has recommended ���Sell��� call on Sesa Goa after disappointing results. It has set a target price of Rs 240 per share on the stock.

���A decline in profit was primarily due to low iron ore prices (20% lower than our forecast). We have lowered our FY10F of iron ore prices by 10% to Rs2.8k/t. With H1 EPS accounting for 22% of our FY10F earnings, we lower our FY10F EPS and TP by 18%. Our new target price of Rs240/share is based on EV/EBITDA of 5x FY10F. Stock is up 17% this month, we recommend SELL,��� the report said.