Sesa Goa slips as government seeks price cut of iron ore

Sesa Goa was down 1.77% to Rs 3026.10 at 14.41 IST on BSE, on reports the government will ask iron ore producers to lower prices of the key steelmaking ingredient to curb inflation which is at 10-month high.

The stock gained 2.10% at day’s high of Rs 3145. The stock touched a low of Rs 2964 so far during the day. The stock had a 52-week high of Rs 3969 on 1 January 2008 and a 52-week low of Rs 1618.45 on 12 April 2007.

The company’s current equity is Rs 39.36 crore. Face value per share is Rs 10. The current price of Rs 3026.10 discounts its Q3 December 2007 annualized EPS of Rs 500.72, by a PE multiple of 6.49.

As per reports, government officials will meet iron-ore miners on 1 April 2008 to discuss price cut.

Sesa Goa is largest private sector iron ore producer in India. Exports accounted for 68.87% of the company total sales in year ended March 2007.

Sesa Goa’s net profit rose 152.7% to Rs 492.71 crore on 99.4% growth in net sales to Rs 1172.38 crore in Q3 December 2007 over Q3 December 2006.

Sesa Goa, an iron ore mining company of the Vedanta group, has been involved in iron ore mining, beneficiation and exports besides. It is also into the manufacture of pig iron and metallurgical coke.