Accumulate Coal India; target of Rs 400: PLilladher
Prabhudas Lilladher is bullish on Coal India and has recommended accumulate rating on the stock with a target of Rs 400 in its February 13, 2013 research report.
Prabhudas Lilladher is bullish on Coal India (CIL) and has recommended accumulate rating on the stock with a target of Rs 400 in its February 13, 2013 research report.
"CIL reported Q3FY13 earnings above our expectation. Stronger-thanexpected realisations in e-auction and washed coal compensated higher costs. We reiterate our .Accumulate. rating with TP of Rs400 (6.5x EV/EBITDA FY15E), supported by better outlook on volumes, attractive valuations and better positioning for price increase, driven by strong operational performance in FY13."
"e-auction realisations rose by ~20 percent QoQ or Rs294/t (3 percent YoY/Rs89/t) at Rs2,941, ahead our expectation of Rs2,600, while, volumes dropped by 9 percent YoY (up 2 percent QoQ) at 10.5m (PLe: 11m) tonnes. FSA realisations came in marginally below our expectation at Rs1,232/t (PLe: Rs1,247), down 4 percent QoQ/Rs49/t (+6 percent YoY or Rs69/t). Washed coal realisation grew 19 percent QoQ (YoY as well) at Rs2,491 on the back of higher grade. Hence, revenue grew 13 percent YoY (PLe: 9.2 percent) at Rs173.3bn (PLe: Rs167.6bn) on the back of 9.2 percent growth in volumes at 120mt (PLe:120mt) and 3.3 percent (PLe:0.4 percent) YoY rise in realisations at Rs1,441 (PLe: Rs1,401)/t. Realisations grew 0.4 percent QoQ or Rs6/t. Total cost/t rose 11 percent at Rs1,085, ahead of our expectation of Rs1,035 on account of higher-than-expected rise in welfare expenses, contractual and miscellaneous expenses. Employee cost declined 3.5 percent QoQ or Rs2.3bn at Rs63.1bn on account of ex-gratia bonus of Rs2.3bn in prior quarter."
"EBITDA/t for the quarter fell 14 percent YoY at Rs357 (PLe: Rs366). Hence, CIL reported 6 percent YoY fall in EBITDA at Rs42.9bn (PLe: Rs43.7bn). PAT grew 9 percent at Rs44bn, ahead of our expectation of Rs40.8bn on the back of higherthan- expected interest income and other operating income. CIL reported rise of 11 percent and 66 percent YoY in interest income and other operating income at Rs15.3bn (PLe: Rs14.9bn) and Rs8.3bn (PLe: Rs4.8bn), respectively," says Prabhudas Lilladher research report.
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