Sesa Goa Ltd - Wait for restarting of mining activities continues - Emkay

Reco: ACCUMULATE
CMP: Rs 124
Target Price: Rs 147

- Without any iron ore sales in Q1FY14, Sesa Goa again posted losses at the EBITDA level to the tune of Rs 1.4 bn; Revenue rose 30% QoQ to Rs 3.8 bn backed by pig iron (Rs 3.2 bn)

- Core loss at Rs 2.11 bn, while with Cairn, PAT was Rs 4.14 bn, down 58% YoY but up 39% QoQ. The QoQ improvement was due to higher pig iron (182%) and met coke (57%) sales

- Company confident of restarting mining in Karnataka in Q2FY14 itself once it gets the forest clearance; Liberia progressing well, US$230 mn capex seen for FY14 and FY15

- We expect Goa will take some time to restart, while Karnataka to contribute 2.29 mt in FY14. We revise our SOTP target price to Rs 147/share. Maintain Accumulate.

Source : Equity Bulls

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