Sesa Sterlite down 2.5 pct; Goa order upside limited - Deutsche Bank

MUMBAI (Reuters) - Sesa Sterlite down 2.5 percent, bucking postive broader indices. The Supreme Court gave the go-ahead on Monday for the auction of around 11.46 million tonnes of iron ore already mined in Goa state, potentially doubling the country's exports this year to top market China if overseas sales are allowed.

However, the Supreme Court has maintained a 14-month ban on iron ore mining in top producing state Goa. Sesa, India's top private-sector mining company, would be the biggest beneficiary if mining resumed in Goa, as it is the largest producer in the state.

Deutsche Bank says there is limited upside potential for the company from the apex court order as the decision reiterates concerns that mining resumption in Goa is likely to take time, and could be significantly lower than before ban.

 

The research house maintains its "hold" rating on the stock with a 12-month price target of 175 rupees.

(Reporting by Subhadip Sircar)