Motilal Oswal's research report on Coal India
Coal India (COAL) offered the highest-ever quantity of 47mt in March. Allocated volumes were up 14% YoY/6mt QoQ to 13mt. Special power sector e-auction volumes were at 5.4mt. The off-take under special e-auction is spread over 2-6 months.
Outlook
COAL deserves a premium over other metal and mining stocks due to its dominant position in the Indian markets and its current coal pricing being very competitive, which has virtually no downside risk. Therefore, we value the stock at 7.5x EV/adj. EBITDA. The stock is trading attractive at 6.3x FY19E EV/EBITDA. Maintain Buy.
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