Moneycontrol
Jan 10, 2018 12:00 PM IST | Source: Moneycontrol.com

CLSA upgrades Coal India to outperform, price hike may take EPS 36% higher in FY19

According to the firm, the full benefit of the price hike may take the EPS 36 percent higher in FY19, while in FY20 EPS growth moderating to just 9 percent.

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Share price of Coal India gained 2 percent intraday Wednesday as broking firm CLSA has upgraded the stock to outperform from underperform.

The firm also raised the target price to Rs 335 from Rs 260 per share.

The company recently approved revision of non-coking coal prices.

According to the firm, the full benefit of the price hike may take the EPS 36 percent higher in FY19, while in FY20 EPS growth moderating to just 9 percent.

The volume growth has moderated in recent months but should remain decent.

The firm expects the valuations at 13.5x FY19 PE, which is reasonable.

At 11:57 hrs Coal India was quoting at Rs 307.40, up Rs 3.35, or 1.10 percent.

Posted by Rakesh Patil
Sections
Follow us on
Available On