Hold Coal India target of Rs 160: Prabhudas Lilladher
Prabhudas Lilladher recommended hold rating on Coal India with a target price of Rs 160 in its research report dated June 18, 2021.
June 21, 2021 / 03:25 PM IST
Prabhudas Lilladher's research report on Coal India
Coal India (COAL) reported Q4FY21 earnings in line with our estimates. Adj. EBITDA fell 16% YoY to Rs81.1bn (PLe:Rs81.4bn) due to 5% fall in realisations and 3% increase in costs. Cash & cash equivalents fell 27% YoY to Rs209bn due to lower earnings, high receivables and elevated capex. Sharp increase in capex intensity came as a negative surprise for street as well as for us. Increase in linkage prices would get diluted in mitigating the elevated capex and upcoming wage hike effective from 1st July, 2021. Similarly, E-auction realisations remained subdued despite global prices at multi-year highs.
Due to low visibility on earnings and deteriorating quality of B/S, we maintain Hold rating on stock with TP of Rs160 (earlier Rs143), EV/EBITDA of 3x FY23e.
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