Feb 15, 2013, 03.10 PM | Source: Moneycontrol.com
Angel Broking is bullish on Coal India and has recommended accumulate rating on the stock with a target of Rs 369 in its February 13, 2013 research report.
, Angel Broking |
“Coal India’s 3QFY2013 net sales grew by 12.9percent yoy to Rs17,325cr. Sales volumes stood at 120mn tonne (our estimate was of 112mn tonne), indicating the company’s focus on increasing offtake. Railway rakes availability stood at 214/day (CIL’s requirements currently stand at 234/day). Realizations grew by 3.4percent yoy and were flat qoq to Rs1,438/tonne.”
“Despite 12.9percent top-line growth, the company’s EBITDA decreased by 4.3percent yoy to Rs5,395cr, mainly due to higher power and fuel costs and other expenses. The adjusted net profit stood at Rs4,410cr (+9.1percent yoy), above our estimate of Rs3,808cr.”
“CIL’s 3QFY2013 net profit growth was driven by higher volumes. Its sales volumes grew by 8.0percent yoy during 9MFY2013, indicating its focus on increasing offtake. Also, CIL has demonstrated strong pricing power by increasing prices of coal to offset rising costs. On the price pooling front, we expect price pooling to be revenue-neutral for CIL in case it imports coal to meet the demand of power producers. Valuing the stock at 8.0x FY2014E EV/EBITDA, we derive a target price of Rs369 and maintain our accumulate rating on the stock,” says Angel Broking research report.
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