Coal India - E-Auction Volumes To Rise To 15% In Q4: Axis Securities

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..Axis Securities Report.Coal India Ltd.'s posted robust results (reported earlier on Feb 13, 2024) with Ebitda/profit after tax beating ours and consensus estimates. Total consolidated revenue stood at Rs 36,154 crore (up 3%/10% YoY/QoQ), which was in line with our estimates.Ebitda stood significantly ahead of our and consensus estimate at Rs 11,373 crore (up 9%/40% YoY/QoQ), mainly led by lower raw material costs (down 41%/47% YoY/QoQ) and stable employee expenses (flat YoY, down by 1% QoQ).Attributable PAT stood at Rs 9,069 crore, up 17%/33% YoY/QoQ, ahead of consensus by 17%, led by higher Ebitda and other income. Coal India declared a second interim dividend of Rs 5.25/share with February 20th 2024 as the record date.The first interim dividend was declared in November 2023 at Rs 15.25/share, which brings the total interim dividend for FY24 to Rs 20.5/share..Valuation and Recommendation:We value the stock at 5.0 times one-year forward enterprise value/Ebitda multiple on FY26E Adjusted Ebitda (unchanged).We arrive at our target price of Rs 510/share (from Rs 500/share), implying an upside of 11% from the current market price..Key risks to our estimates and target priceThe key risk to our 'Buy' rating is the decline in e-Auction volumes versus our expectations. Lower than expected e-auction premiums.Lower coal offtake than our assumptions for FY25/26E..Click on the attachment to read the full report:.Zee Entertainment Hits 15% Upper Circuit On Sony Deal Revival Talks.DISCLAIMERThis 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.

Coal India - E-Auction Volumes To Rise To 15% In Q4: Axis Securities

The key risk to our 'Buy' rating is the decline in E-Auction volumes versus our expectations.

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