Buy Coal India; target of Rs 439: Motilal Oswal

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Motilal Oswal's reserach report on Coal IndiaCoal India dispatches in September 2015 grew 15% YoY to 40.4mt, the best ever monthly growth. YTD dispatch growth now stands at 9.3% YoY, tracking our full-year growth estimate of ~9%. Production in September grew 6.6% YoY to 37.2mt, with YTD growth now at 8.9%. Encouragingly, media articles report that overburden removal for the six months ended September is up a massive 37% YoY—a pre-cursor to strong production volume growth ahead. We believe the sharp jump in dispatches during the quarter is partly attributed to weaker monsoon and higher dispatches to the non-power sector.The current stock price is factoring in very low coal prices corresponding to an RB Index (6000 Kcal/t) lower than USD40/t. At RB Index of USD40/t, the DCF value is arrived at INR345/share. Therefore, we believe that the margin of safety is high. Reiterate Buy.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.

Read More