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Sesa Goa

Sesa Goa

· Highest ever iron ore sales volumes in tough Q3 is commendable.
· Chinese Steel/Iron Ore Industry Macro is improving.
· Q4 traditionally the best quarter but can't ignore global macro stress – 5MT volume assumed for Q4 against 5.44MT in Q3.
· Amalgamated estimates from now on – No material change as pig iron operations small.
· Attractively valued - BUY with a price target of Rs.123 based on 2.5x EV/EBITDA for FY09E.