Hold Coal India; target of Rs 225: ICICI Direct

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

ICICI Direct's research report on Coal India

Coal India (CIL) reported healthy operational performance for Q1FY20 wherein EBITDA and PAT came in higher than our estimate. CIL reported a sales volume of 153 million tonne (MT) (nearly flattish YoY but down 6% QoQ). FSA sales volume came in at 130 MT while FSA realisations during the quarter was at Rs 1370/tonne (up 4.4% YoY, higher than our estimate of Rs 1360/tonne). E-auction volumes came in at 19.1 MT while e-auction realisations were at Rs 2155/tonne. The company reported a total operating income of Rs 24939 crore up 3% YoY (our estimate of Rs 25,587 crore). EBITDA came in at Rs 6612 crore, up 15% YoY (our estimate of Rs 6052 crore). EBITDA/tonne was at Rs 431 /tonne (our estimate of Rs 395/tonne). The ensuing PAT came in at Rs 4629 crore, up 22%YoY (our estimate of Rs 4395 crore).

Outlook

Going forward, we value the stock at 5x FY21E EV/EBITDA (downward revised from 5.5x earlier on the back of flattish trend witnessed in production and off take volume) and arrive at a target price of Rs 225. We maintain our HOLD recommendation.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More