Buy Coal India; target of Rs 378: AUM Capital

Coal India Ltd (CIL) is a state owned coal mining “Maharatna” company. It is engaged in the production and sale of coal. It operates through approximately 82 mining areas spread over eight provincial states of India. It has approximately 430 mines, in which 227 are underground, 175 are opencast and 28 are mixed mines. It also operates approximately 15 coal washeries (including 12 coking coal and three non-coking coal) and manages other establishments like workshops, hospitals, among others. It serves sectors like power and steel, cement, fertilizer, brick and kilns industries etc. It has seven wholly owned coal producing subsidiary companies and one mine Planning & Consultancy company.  

       

At the CMP of Rs.321.55, the stock is trading at FY17E P/E of 12.75x. We recommend a BUY on the stock with a Price Target of Rs.378 (15x FY17E EPS) with an upside potential of 18% from the current level with an investment horizon of 9-12 months.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.