Coal India share price slipped over 3 percent to the intraday low of Rs 160.55 on November 15 after the state-owned company announced its July-September quarter results on November 12.
Coal India, the country’s largest producer of coal, reported a consolidated profit after tax (PAT) of Rs 2,933 crore, a drop of 1 percent from Rs 2,952 crore in the corresponding quarter of the previous year. The drop was 8 percent when compared to Rs 3,174 crore consolidated PAT reported in the June quarter.
The consolidated revenues from operations at Rs 23,291 crore climbed 10 percent from Rs 21,153 crore recorded in the corresponding quarter last year. However, consolidated revenues from operations declined 8 percent from Rs 25,282 crore in the first quarter of this financial year.
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Here is what brokerages have to say about the stock and the company post- September quarter earnings:
CLSA
The research house has kept a “buy” rating on the stock, with a target at Rs 210 a share.
The Q2 EBITDA was below estimates on higher costs and lower realisations, however, EBITDA ex-OBR (0ver burden removal) fell 5 percent QoQ to Rs 272/t. Receivables fell to Rs 14,900 crore.
Citi
The broking house that has a “neutral” call on the stock cut the target price to Rs 160 from Rs 185 a share.
The Q2 e-auction premiums were muted, lacking visibility on catalysts, however, further upsides maybe limited as domestic coal supply improves.
With ESG concerns, a significant re-rating may not be easy.
ICICI Securities
We maintain our buy rating, our DCF-based target price of Rs 234, and our offtake volume estimates for FY22E / FY23E at 625mnte/655mnte, respectively.
The stock is trading at 5.6x P/E and 2.9x EV/EBITDA on FY23E basis with 39.7 percent RoE.
We expect dividend payout to be high, leading to a 12 percent yield at current prices, as incremental capex in diversified segments is expected to be funded primarily by debt.
At 11:54 hrs Coal India was quoting at Rs 160.85, down Rs 6.10, or 3.65 percent on the BSE.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
