Buy Coal India; target of Rs 155: Geojit

Geojit is bullish on Coal India has recommended buy rating on the stock with a target price of Rs 155 in its research report dated February 18, 2021.

February 19, 2021 / 01:39 PM IST
 
 
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Geojit's research report on Coal India


Coal India is one of the largest coal producers in the world with coal production 602mt in FY20 and a target of 1000mt by FY23-24. In Q3FY21, consolidated revenue grew by 11.4% QoQ, as volumes increase due to demand recovery. FSA revenue increased by 9.2% QoQ to Rs. 16,674cr (down 7.4% YoY). EBITDA increased by 29.9% QoQ while margin expanded by 340bps QoQ to 23.8% driven by higher revenue and other operating income. As a result, PAT also rose 4.7% YoY. Expected rise in power demand and improving volumes along with effective control over costs could drive the company’s performance in near-term.


Outlook


We reiterate our BUY rating on the stock with a rolled forward target price of Rs. 155 based on 4x FY23E EV/EBITDA.

For all recommendations report, click here

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first published: Feb 19, 2021 01:39 pm

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