Reduce Sesa Goa, target of Rs 90: Emkay

Emkay Global Financial Services has maintained its reduce rating on Sesa Goa with a target price of Rs 90 in its April 21, 2009 research report.

"Sesa Goa reported 4QFY09 and FY09 results, which are in line with our estimates. For 4QFY09, net sales stood at Rs 15.7 billion (yoy down 7.8%, qoq up 5.8%), EBITDA stood at Rs 7.4 billion (yoy down 39.3%, qoq up 28.8%) and PAT stood at Rs 5.5 billion (yoy down 32.5%, qoq up 16.3%). Sesa reported EPS of Rs 6.96. For FY09, net sales stood at Rs 52.3 billion (yoy up 36.8%), EBITDA stood at Rs 25.1 billion (yoy up 8.9%) and PAT stood at Rs 19.9 billion (yoy up 29%). Sesa reported EPS of Rs 25.25."

"The company has maintained its guidance for 20-25% volume frowth for FY10E. As on 31st March ‘09, Sesa has cash balance of Rs 41.4 billion. We maintain 'REDUCE' on the stock with revised target price of Rs 90 (1.2x FY10E book value)," says Emkay Global Financial Services' report.