Coal India Ltd. share price target

Demand recovery for coal coupled with rising prices should continue to benefit Coal India in the coming quarters. Though reliance on coal usage is expected to decline to 34% by 2040, company expects demand will continue to grow by 31% in absolute terms. Being the market leader in the domestic market and with well-budgeted capacity in place, Coal India is well positioned to tap into this future opportunity. We retain our BUY with a revised TP of Rs. 176 based on 4.5x FY23E EV/EBITDA....

Purchase of finished goods cost rose from Employee cost decreased from 49.79% to 45.05%. contract fell from 18.29% to 17.43%....

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 well as for us. Increase in linkage prices would get diluted in mitigating the elevated capex and upcoming wage hike effective from 1 st 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...

Coal India Ltd.'s quarterly profit rose, missing estimates, amid cost control measures and an increase in other income. State-owned Coal India on Monday reported a marginal 1.1 per cent decline in its consolidated profit at Rs 4,586.78 crore for the quarter ended March 2021 on the back of lower sales. The...

Expected rise in power demand and improving volumes along with effective control over costs could drive the company's performance in near-term. We reiterate our BUY rating on the stock with a rolled forward target price of Rs. 155 based on 4x FY23E EV/EBITDA. Topline records sequential improvement Coal India's revenue grew by 11.4% QoQ to Rs. 21,708cr (+0.7% YoY) primarily aided by increased volumes on the back of strong demand in Q3FY21. FSA revenue posted a 9.2% QoQ increase to Rs. 16,675cr (-7.4% YoY) due to increase in volumes (+13.9%...

In the current fiscal (YTD), Coal India witnessed a flattish trend in both production and offtake volumes. During the 10 months period between April 2020 and January 2021 (YTD), production volume was at 453 MT (up 0.4% YoY) while offtake volume during the aforesaid period was at 463 MT (marginally down 2% YoY). Going forward, for FY21E, FY22E and FY23E, we...

Coal India (CIL) has posted 21% drop in consolidated net profit at Rs 3,084.10 crore despite 2% growth in total income to Rs 23,686.03 crore for third quarter ended December 2020, chiefly due to sales volume growth partially offset by drop in realization. The operating margin (OPM) rose 40 bps to 21.8%. Thus, Operating Profit (OP) grew 4% to Rs 5,164.78 crore. Performance for quarter ended December 2020...

Coal India reported EBITDA (adj. for non-cash stripping activity adj) below volumes on a reasonable base. The benefit of rise in spot prices would be limited in E-auction realisations due to high share of auctions to under stress power sector. Given the ESG related issues, volatile performance operational performance and overhang on stock supply through OFS/ETF, we maintain...

Coal India (COAL)'s dispatches reported an 8% YoY increase at 51.3mt for November. This marked the fourth straight month of YoY growth highlighted by continued recovery in power demand. As per initial data from POSOCO, India's power demand / coal-based generation has risen 3.5%/5.2% YoY. YTDFY21, Coal India's off-take is now down just ~2% YoY (1HFY21: -8% YoY). With continued recovery in power demand, we conservatively raise our FY21 off-take estimates to 580mt (flat YoY) v/s 565mt earlier (-3% YoY). Our estimates imply ~2% YoY off-take growth for the remainder of FY21....