Sesa Goa managed by Anil Aggarwal of vedanta is India’s largest private sector exporter of iron ore with mining activities in Goa, Karnataka and Orissa and also owns a prospecting license in Jharkand. Kotak has initiated coverage with a BUY recommendation ahead of the Bonus and Stock split.
Expect company to double the annual iron ore sales to 25MMT in next five years while rising 20% to 15MMT in FY09E from the 12.4MMT in FY08. Sesa Goa should be able to negotiate additional mining contract agreements in the coming years. (more…)