Motilal Oswal's research report on Coal India
COAL posted a strong sequential rebound in margin in 3QFY22, although it missed our estimate on higher than expected RM costs and contractual expenses. We expect profitability to recover further in 4QFY22, led by strong e-auction premiums, which breached the 100% mark after 12 quarters in Jan-Feb'21.
Outlook
We raise our FY22E/FY23E adjusted EBITDA by 4%/15%, led by higher e-auction premium and increase our TP to INR217 (from INR200 earlier), valuing COAL at 4x FY23E EV/EBITDA. The company is a key beneficiary of the ongoing supply shortage in the global coal market, which is impacting importers in India.
More Info
At 15:46 hrs Coal India was quoting at Rs 159.90, down Rs 1.30, or 0.81 percent.
It has touched an intraday high of Rs 160.60 and an intraday low of Rs 155.50.
It was trading with volumes of 733,032 shares, compared to its thirty day average of 570,284 shares, an increase of 28.54 percent.
In the previous trading session, the share closed down 3.62 percent or Rs 6.05 at Rs 161.20.
The share touched its 52-week high Rs 203.85 and 52-week low Rs 123.45 on 06 October, 2021 and 19 April, 2021, respectively.
Currently, it is trading 21.56 percent below its 52-week high and 29.53 percent above its 52-week low.
Market capitalisation stands at Rs 98,542.03 crore.
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