Coal India Q4 Results Review: Motilal Oswal Maintains 'Buy' Rating Post Inline Earnings; Sees 25% Upside

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Coal India Ltd. delivered a decent performance in Q4 FY25 after a muted show in H1 FY25. The e-auction premiums softened during FY25, which got offset by better e-auction volume (~10% share to total sales volume).

The company’s focus on increasing coal-washer capacity will improve its market share in domestic coking/non-coking coal. Further, management is focusing on the expansion of coal mines, which would be funded via internal accruals, or Coal India might borrow to undertake certain projects.

For FY26/FY27, we largely maintain our estimates and expect volumes to improve, which would boost earnings performance. The e-auction premium is expected to remain stable at 70% going ahead.

We expect Coal India to clock an 8% volume CAGR during FY25-27. This would translate into 11% revenue and 14% Ebitda CAGRs.

At current market price, the stock is trading at 3.3x FY27E EV/Ebitda. We reiterate our Buy rating with a target price of Rs 480 (premised on 4.5x on FY27E EV/Ebitda).

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.