26 December 2012

Sesa Goa - Management interaction Note - Centrum


Management Interaction Note
Sesa Goa Ltd.
Buy
Target Price: Rs192
CMP: Rs192.3         
Downside: 0%
Positive vibes from WCL, Liberia
Sesa Goa (Sesa) recently announced the acquisition of balance 49% stake in Western Cluster Ltd (WCL), Liberia for US$33.5mn in cash from Elenilto Minerals & Mining LLC taking its stake in WCL to 100%. We had a detailed discussion with the Sesa management on the rationale for taking 100% ownership through residual stake purchase, the lower price for acquisition for residual stake which seemed to be a surprise and the prospects of WCL going ahead. We were impressed with the company's elaborate plans and see big potential for Sesa in future based on its development plans and comparison with ArcelorMittal’s Greenfield iron ore project in Liberia which started production recently. WCL is looking to start production from its Bomi Hills mine in the first phase with a production capacity of ~5 mtpa and is expected to announce the capex for the project (including development of port and railway logistics) soon. Please find below the excerpts of our interaction and comparison to the ArcelorMittal Liberia iron ore project which started shipments recently:

FII & DII trading activity on NSE and BSE 26-12-2012

CategoryBuySellNet
ValueValueValue
FII2035.171291.38743.79
DII768.471069.32-300.85

 
 


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FII DERIVATIVES STATISTICS FOR 26-Dec-2012

FII DERIVATIVES STATISTICS FOR 26-Dec-2012 
 BUYSELLOPEN INTEREST AT THE END OF THE DAY 
 No. of contractsAmt in CroresNo. of contractsAmt in CroresNo. of contractsAmt in Crores 
INDEX FUTURES894632634.33836972471.3056033116456.19163.02
INDEX OPTIONS56776616798.5156181016609.84162413348031.02188.67
STOCK FUTURES3161389180.112956909291.61119550136788.66-111.50
STOCK OPTIONS421831242.16418101228.03764632174.6114.13
      Total254.33


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‘Conviction on rate cuts is higher today’ :: Business Line


There are pockets of opportunity and one needs to carry out a diligent research on the companies to identify good credits.
Funds that invest in longer-term bonds and those that invest in lower-rated debt may do well in 2013, says seasoned debt fund manager Amandeep Chopra who is Head-Fixed Income at UTI Mutual Fund.

Tax investments should be part of asset allocation policy :: Business Line


The period from December to March in a financial year is the time when most of you seriously evaluate tax-savings products. The issue at hand is this: Should you invest to save taxes? In this article, we discuss why investing to save taxes may not be necessarily good for you. We also suggest how you can set up a tax-efficient investment policy.

TAX-SAVING

Suppose your provident fund contribution each year is Rs 35,000 and your life insurance premium is Rs 40,000. And if you also have a public provident fund (PPF) account, will you restrict your PPF investments to Rs 25,000 to claim the Rs 1 lakh tax benefit? Or will you deposit, say, Rs 75,000 in PPF because your investment objective requires you to invest Rs 75,000 in bonds with 15-year maturity and you believe that PPF is a good bond investment?
You should deposit Rs 75,000 if you believe PPF is a good investment.

Grey Market:: Care list above 900; PC, Bharti like to be at discount

IPO
Opening Dt
Closing Dt
Band
Retail Discount
Grey Market Premium


















PC Jeweller Limited
10-Dec-12
12-Dec-12
135
5
Discount






BHARTI INFRATEL LIMITED
11-Dec-12
14-Dec-12
220
10
Discount






PFC NCD
14-Dec-12
27-Dec-12
1000
0
Discount






IIFCL  NCD
26-Dec-12
11-Jan-13
1000
0
Discount



as suggested earlier, CARE was quoting at 140-150 premium to Rs 750 issue...listed and trading above 900