Accumulate Coal India; target of Rs 172: Prabhudas Lilladher

Prabhudas Lilladher's research report on Coal India

Coal India (COAL) Q3FY22 EBITDA above our/consensus estimates (CE) by 3%/7%. Adj. EBITDA grew 16% YoY to Rs73.9bn (PLe:Rs73.1bn), driven by 3% expansion in margins and 13% volume growth. COAL displayed strong performance on sales volume over last six months. However, delay in price hike of FSA (85% total volumes) remained a dampener. Though delayed, we believe that price hike is inevitable in wake of steep rise in global prices, significant increase in costs and a long gap of almost four years since last increase. On the balancing side, strong pick-up in E-auction realisations helped to negate the absence of increase in FSA prices partially.

Outlook

Underpinned by improved operational performance and better outlook on both FSA and E-auction prices, we maintain Accumulate rating with TP of Rs172., EV/EBITDA of 3.0x FY23e.

More Info

At 14:39 hrs Coal India was quoting at Rs 159.30, down Rs 1.90, or 1.18 percent.

It has touched an intraday high of Rs 159.70 and an intraday low of Rs 155.50.

It was trading with volumes of 636,265 shares, compared to its thirty day average of 570,284 shares, an increase of 11.57 percent.

In the previous trading session, the share closed down 3.62 percent or Rs 6.05 at Rs 161.20.

The share touched its 52-week high Rs 203.85 and 52-week low Rs 123.45 on 06 October, 2021 and 19 April, 2021, respectively.

Currently, it is trading 21.85 percent below its 52-week high and 29.04 percent above its 52-week low.

Market capitalisation stands at Rs 98,172.26 crore.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More