February 22, 2017 / 15:33 IST
Coal India’s (COAL’s) 3QFY17 results beat estimates (EBITDA at Rs 39.6bn vs est 33.7 bn, -20% YoY), as e-auction volumes and prices were ahead of forecasts. E-auction volumes constituted 18% of the mix (vs 13% est, 671 bps YoY, 126 bps QoQ), while premiums were higher at 21% (vs 15% in 2QFY17, 46% in 3QFY16).
Outlook
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We expect this to improve once overall economic growth, which has been sluggish, takes off. With its built-in operational leverage, COAL’s numbers can largely outperform expectations. We maintain BUY with a TP of Rs 369 (7.0x FY19 EV/EBITDA).
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