Motilal Oswal 's research report on Coal India
Coal India (COAL) reflects the broad recovery in power demand (albeit aided by the low base of last year for COAL). Off-take rose 9% YoY in 2Q (v/s 22% YoY decline in 1Q). Operationally, though, EBITDA (ex-OBR) declined 20% YoY (27% miss) due to higher contractual expenses amid strong OBR. Muted power demand has impacted e-auction realizations and overall growth in off-take.
Outlook
However, with recovery in power demand and a large cash position, Coal India can tide over the situation. Maintain Buy, with target price of INR192/sh based on 4x Sep'21 EV/EBITDA.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
