Coal India Shares In Focus As Motilal Oswal Maintains Bullish Stance After Q4 Results — Check Target Price

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Motilal Oswal Report

In this report, the brokerage Motilal Oswal highlighted that Coal India Ltd. has delivered a steady performance in the March quarter, supported largely by higher e-auction volumes, which accounted for around 14% of total sales. E-auction premiums stood at 36% during the quarter, aiding profitability.

The brokerage expects Coal India to post a volume CAGR of about 4% over FY26–28, with a higher share of e-auction volumes and improved premiums likely to support net sales realisation and margins. This, in turn, is projected to drive a revenue compound annual growth rate of 5% and Ebitda CAGR of 12% over the same period.

Motilal Oswal also highlighted that the company's focus on expanding coal washer capacity is expected to strengthen its market share in both coking and non-coking coal segments. Additionally, Coal India continues to invest in expanding mining operations, with growth capex likely to be funded through internal accruals.

At current levels, the stock is trading at around 5x FY28 estimated EV/Ebitda. The brokerage has reiterated its 'Buy' rating on the stock, with a target price of Rs  530, valuing it a 6 times FY28 EV/Ebitda. 

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