Sesa Goa - Performance in line - Emkay

Reco: HOLD
CMP: Rs 183
Target Price: Rs 194

Core PAT at Rs 4.51 bn, in line with estimates after adjusting for 2.3 bn forex loss; Volume (2.9 mt) was lower on logistics problem in Goa; Iron ore realizations at US$100/ tonne

- Adj. EBITDA stood at 6.7 bn with margin at 39%. Adj operating profit/ tonne in iron ore stood at US$42, flat QoQ. Topline at Rs 17.3 bn was down 18% YoY and 38% QoQ

- Karnataka EC capped at 2.29 mt against 6 mt earlier; Mining policy in Goa still pending along with logistics related problems; Liberia capex put at Rs 4-4.5 bn for FY13

- Believe, volume would continue to be a concern for FY13; We value core business at 3.5XFY14 EV/ EBITDA and with 30% disc. to Cairn Ind current value, TP stands at Rs 194; Hold.

Source : Equity Bulls

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