Buy Coal India; target of Rs 370: Motilal Oswal

Coal dispatches declined 9.6% YoY to 36.7m tons in August 2016 and were flat YTD at 211m tons. The sluggishness in dispatches over the past few months is temporary, in our view - power plants have destocked 10m tons since March 2016, which is equivalent to 5% of COAL's dispatches. Production declined 10.4% YoY to 32.4m tons in August, but grew 1.1% YoY to 194m tons YTD. All subsidiaries, except ECL, reported YoY decline in dispatches in August. WCL saw its eighth consecutive month of decline - down 22% YoY in August. Dispatches at NCL and MCL were down 12% and 10%, respectively, from a healthy double-digit growth in the earlier months. ECL's dispatches were up 46% YoY, benefiting from the price cut in higher grade coal in June.   For all recommendations, 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.