Sesa Goa earnings estimate slashed

Deutsche Bank has lowered its earnings estimates for Sesa Goa for 2011/12 by 29 per cent and 2012/13 by 24 per cent.

It has cut stock target price to 270 rupees from 360 rupees and maintained its buy rating. The move is to factor in the increase in iron ore export duty to 30 per cent; an estimated 20-25 per cent cut in iron ore volume due to longer-than-expected delays in the volume ramp up in Goa and continuation of the mining ban in Karnataka; and lower profit contribution from Cairn India in which Sesa Goa now holds 20 per cent.

At 12.42 p.m,Sesa Goa was at 160.10 rupees,up 2.01 per cent.