Sesa Goa an investment bet, says SP Tulsian

Tulsian told CNBC-TV18, “Considering that Sesa Goa-Sterlite merger is likely to go through because there we will get to know the outcome by June 25 of the poll held in case of Sesa Goa, I am expecting that to go through and in fact considering the size and the consolidated operations of the Sesa Goa with ferrous and non-ferrous mix kind of things and maybe the crude portfolio of Cairn India stake coming into the company, one can look to buy that stock.”

He further added, “If you take a call on Sterlite Industries , I think once the merger approval is happened by the shareholders then the spread or the arbitrage opportunities prevails more in case of Sterlite because that should logically rule at 57-58% of the share price of Sesa Goa and if you take a call right now also there is an arbitrage opportunity of Rs 4-5 going by the current rate of Sesa Goa, Sterlite should logically rule at Rs 103-104 but even on a long-term fundamental point of view maybe with a view of three-six months, I see Sesa Goa as a good play for making investments.”