SP Tulsian`s view on Sesa Goa, Kalyani Steel

SP Tulsian, sptulsian.com shares his on Sesa Goa and Kalyani Steel.

Tulsian told CNBC-TV18, “The news is quite positive for the stock like Sesa Goa because they were not operating with mines in Karnataka for last over one year. Second direct beneficiary which is likely to see this included in the 8 iron ore mines is Kalyani Steel because Kalyani Steel management have confirmed 45 days back on the channel that they are expecting their mines to start and may be the removal of the reclamation work will take about 2-3 months time and I expect that to happen in case of Sesa Goa also.”
He further added, “In next 2-3 months we should be able to see the, I don’t know how much monsoon can really hamper that. So, may be on a longer period it can take about 3-4 months where we will be seeing the resumption of the iron ore production by Sesa Goa and Kalyani Steel. I don’t think that there are any other listed players which are directly benefitted in the 8 iron ore mines which Karnataka government is contemplating to restart and beneficiary as a user will be JSW Steel because the kind of problems they have been facing in terms of the higher price, in terms of the logistic movements while procuring the material from NMDC in the auction process and all that will also get quite eased on the logistic front as well as on the price front. So, these companies are seen as direct beneficiary and the logical interpretation of this operation can be that this is going to be quite positive. As I said that one should not really expect too much in September quarter because June quarter is already over.”
“Always if you see the second quarter Sesa Goa has been posting dull results because of the monsoon in Goa also the mining operations come to a standstill, same thing will be for Kalyani Steel, but I am expecting both these companies, Kalyani Steel and Sesa Goa to perform extremely well in H2 of FY13. That will really be a big kicker for the earnings to grow with resumption of these iron ore mines, so very positive and the consequential effect as I said of the better availability of the iron ore to JSW Steel.”