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Last Updated : Feb 13, 2019 01:09 PM IST | Source: Moneycontrol.com

Coal India Q3 review: Global brokerages remain positive after Q3 result

CLSA and Jefferies have Buy ratings on the stock, while Macquarie and Morgan Stanley Outperform and Overweight calls

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Most global brokerages remain positive on Coal India after the company reported its results for the quarter ended December 31, 2018.

CLSA and Jefferies have a buy rating on the stock, while Macquarie and Morgan Stanley have outperform and overweight calls, respectively.

Coal India reported a net profit of Rs 4,567 crore for the third quarter, a jump of 50.1 percent YoY. The revenue increased 15.4 percent YoY to Rs 25,045 crore.

Here's what global brokerages had to say about Coal India after it released its earnings report.

Brokerage: CLSA | Rating: Buy | Target: Cut to Rs 275 from Rs 310

The demand outlook looks decent, according to CLSA.

CLSA cut its FY19-21 EPS estimates for Coal India by 3-5 percent due to lower volumes.

The earnings outlook is muted, but the valuation is reasonable.

Brokerage: Jefferies | Rating: Buy | Target: Cut to Rs 309 from Rs 350

"We maintain buy rating given cheap valuation and strong dividend yield potential," the brokerage said in a research note.

Jefferies cut its FY19/20 EBITDA estimate for the company by 2 percent/0.7 percent, taking into account lower volumes.

Coal India's volume should improve as issues have been partly resolved, Jefferies added.

Brokerage: Morgan Stanley | Rating: Overweight | Target: Rs 296

Volume outlook and FSA realisation are crucial to the stock's performance, Morgan Stanley said.

"Volumes are weak but strong e-auction realisation has offset this," the brokerage added in a research note.

Brokerage: Macquarie | Rating: Outperform | Target: Rs 270

Coal India's profit for the third quarter beat estimates due to higher realisation, according to Macquarie.

The stock underperformed because the government divested 5.4 percent of its stake in the company.

At 1202 hours, Coal India was quoting at Rs 223.80, up Rs 0.85, or 0.38 percent.

Disclaimer: The views and investment tips expressed by investment experts 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.
First Published on Feb 13, 2019 01:09 pm
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