Accumulate Coal India; target of Rs 172: Prabhudas Lilladher

 

Coal India 

Coal India || Coal India latest news  || Sub: Coal Accumulate Coal India; target of Rs 172: Prabhudas Lilladher

Coal India || Coal India latest news  || Sub: Accumulate Coal India; target of Rs 172: Prabhudas Lilladher

Prabhudas Lilladher's research report on Coal India

Coal India (COAL) Q3FY22 EBITDA above our/consensus estimates (CE) by 3%/7%. Adj. EBITDA grew 16% YoY to Rs73.9bn (PLe:Rs73.1bn), driven by 3% expansion in margins and 13% volume growth. COAL displayed strong performance on sales volume over last six months. However, delay in price hike of FSA (85% total volumes) remained a dampener. Though delayed, we believe that price hike is inevitable in wake of steep rise in global prices, significant increase in costs and a long gap of almost four years since last increase. On the balancing side, strong pick-up in E-auction realisations helped to negate the absence of increase in FSA prices partially.

Outlook

Underpinned by improved operational performance and better outlook on both FSA and E-auction prices, we maintain Accumulate rating with TP of Rs172., EV/EBITDA of 3.0x FY23e.

More Info on Trent

At 14:39 hrs Coal India was quoting at Rs 159.30, down Rs 1.90, or 1.18 percent.

It has touched an intraday high of Rs 159.70 and an intraday low of Rs 155.50.