Sesa Goa Buy Call

Stock market analyst Ashwani Gujral is of the view that the stock of Sesa Goa can be purchased on declines with a stop loss of Rs 3100 for achieving a medium-term target of Rs 3900.

Mr. Gujral said that the investors can achieve the said target on the back of brilliancy in the stock market.

Today, the stock opened at Rs 3395 as against its last closure at Rs 3,334.95 on the Bombay Stock Exchange (BSE). The stock of the company has touched 52-week high of Rs 3969 and a low of Rs 1485 on BSE.

With an EPS of Rs 240.38, the stock is trading with a P/E of 14.22 at 11:58 am (today).

As the constructive turn of the stock market, the stock has performed well during last week.

For the quarter ended December 2007, the company has reported a phenomenal 2.53 times jump in net profit to Rs 4,927.08 million as compared with Rs 1,949.38 million in the corresponding quarter of the last year.

Net sales during the quarter doubled to Rs 11,723.82 million, whereas the total income surged 98.20% to Rs 11,889.16 million from Rs 5,998.48 million for the corresponding quarter, last year.

The earnings per share (EPS) surged 2.53 times to Rs 125.17 for the quarter ended December 2007.

The company has also announced an interim dividend of Rs 15 a share for the financial year 2007-2008.

Other stocks from the mining sector that looks good for short-term as well as long-term trading includes NMDC, Guj Mineral and Ferro Alloys.

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