Coal India has target of Rs 390: Prabhudas Lilladher

Coal India has target of Rs 390, says Ajay Bodke, Head - Investment Strategy & Advisory at Prabhudas Lilladher.

Bodke told CNBC-TV18, "I think our top pick in the IT sector remains HCL Technologies and Infosys is the second top pick in the largecap space. I think from the valuations perspective we feel that as the calendar year progresses Q1 will be slightly on the weakish note but momentum should start picking up from the second quarter for Infosys and valuations remain supportive, so we still are positive on Infosys."
He further added, "Coal India - we have been positive all through and our stance vindicated after the announcement that – what the market fearing essentially is a very large penalty that might be imposed on Coal India and 0.01% negligible penalty which also will come into force only after three years, I think has been a great support for the Coal India stock. So we continue to remain positive on Coal India.”
“We believe that it is well placed in terms of increase in prices, we expect the company to increase prices by around 10-12% during the course of the Q1 of FY13 and this we believe will drive an EBITDA growth of around 10-12% in FY13 for Coal India. So I think valuations also are attractive given 15% earnings CAGR between FY12 to FY14 for Coal India and we are expecting a target price of around Rs 390 over a 12 month period for Coal India."