Coal India good bet for long term, target Rs 374: Agarwal

Rajesh Agarwal, Head of Research, Eastern Financiers Limited is of the view that Coal India is a very good investment bet for a longer term horizon. He has a price target of Rs 374-400 in the next one year.

Agarwal told CNBC-TV18, “In the short-term these kind of concerns about disinvestment and all would take negative effect on the stock and that would put pressure on the market cap. However, going by the fundamentals Coal India is a very good stock to keep in ones portfolio. Not only it is hold but it is a buy at these levels. Any further fall comes it is a better opportunity to add onto the stock because if you look at the numbers it is one of the biggest coal mining companies in the world.”

He further added, “Almost 80 percent of the domestic consumptions come from Coal India. With power sector trying to improve and demand from there coming in volumes are going to grow, healthy balance sheet, whole lot of cash trading at a PE of 11 it is a very good investment bet for a longer term horizon a target of Rs 374-400 in the next one year.”