Sesa Goa - Nirmal Bang Institutional

- Sesa Goa's (SGL) 1QFY14 performance was better than expectations, posting EBITDA loss of Rs428mn versus our estimate of a loss of Rs916mn and street estimate of a loss of Rs864mn.

- We are negatively surprised to observe the slow progress in Goa considering the state's high dependence on iron ore mining, with the initial date for hearing by the Supreme Court yet to be fixed.

- We have revised our EBITDA estimates downward by 9%/2%, driven by change in our rupee-US dollar rate assumption and commodity prices, although PAT estimates have been revised upward by 5%/30% for FY14/FY15, respectively, due to higher profit from Cairn India (CIL).

- We have retained our Buy rating on SGL with a revised TP of Rs165 (6% down from our previous TP of Rs176), based on combined entity Sesa-Sterlite's TP. We may review our earnings estimates and stock rating after the conference call scheduled on 30 July 2013 at 10AM.

Source : Equity Bulls

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