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Accumulate Coal India target of Rs 164: Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on Coal India with a target price of Rs 164 in its research report dated September 08, 2021.

September 13, 2021 / 01:29 PM IST
 
 
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Prabhudas Lilladher's research report on Coal India


COAL India (COAL) delivered marked improvement on three counts in August. Resilient volumes despite lean month, continuous reduction in dues from State power generators and strong E-auction revenues were the highlight of month. There are concerns that COAL would be under pressure to divert high margin E-auction volumes to power utilities under linkage/Fuel supply agreement (FSA) due to increased power demand and low inventory at power plants. We see no risk to its E-auction volumes as 1) power demand would start receding in October, 2) seasonal increase in COAL’s volume movement and 3) major chunk of auction volumes are already dedicated for power utilities.


Outlook


In light of better operational performance and strong outlook on E-auction realisations, we maintain Accumulate with TP of Rs 164 based on EV/EBITDA of 3x FY23e.


For all recommendations report, click here


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first published: Sep 8, 2021 12:01 pm

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