Stocks to watch out for in this bear market - 3

Sesa Goa:

India’s biggest non- state iron-ore exporter, Sesa Goa had posted excellent results for the quarter ended June 2008 on 22nd of this month. It’s the biggest advance in six months. Higher profits are on the account of higher sales of the steelmaking material and metallurgical coke.

The company said its net profit for the quarter rose to 6.3 billion rupees from 1.31 billion for the corresponding period a year earlier, while total revenue rose to 13.4 billion rupees from 5.3 billion rupees.

Earnings from iron ore in the quarter ended June rose 43 percent to $90 a ton and gains from coke, used to fire blast furnaces, doubled to $500 a ton.Sesa Goa can continue good growth rate as the global steel prices are soaring at the moment and it has very good market world wide.

After the news had come out Sesa Goa climbed 14.6 percent to 3,305 rupees in BSE. It still looks attractive at CMP. Long term investors with an investment horizon of 1- 2 years can buy this stock at CMP. Every dip from here can be seen as a buying opportunity.

For more information please visit http://www.sesagoa.com/index.htm

 

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July 26, 2008 | Filed Under Stocks 

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