Buy Anmol India; target of Rs 255: Khambatta Securities

Khambatta Securities' research report on Anmol India

Anmol India Limited (Anmol) is a bulk supplier of imported coal, providing end-to-end coal supply chain management solutions. The company specialises in supplying high GCV coal, USA coal, Indonesian coal, Saudi pet coke and USA pet coke, commanding a sizeable 16% share of the USA coal market in India. A growing and industrialising economy along with increasing urbanisation is expected to drive up energy use as coal is seen to remain India’s energy mainstay for next 30 years. India does not produce adequate quantity of coal to meet the domestic demand while various types, grades and varieties of coal are required for different end uses. As a result, coal imports are expected to remain strong going forward.

Outlook

At current levels, the Anmol stock trades at an attractive 8.8x FY24E EPS. Assigning a target P/E multiple of 13.0x FY23E EPS, we value Anmol at Rs 255, informing a BUY rating with an upside of 48%.

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