BQ Prime'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 BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Systematix Research Report
Coal India Ltd. reported Q2 FY24 production and dispatch of 157 million tonne (+13% YoY, -10% QoQ) and 174 million tonne (+12% YoY, -7% QoQ), respectively, despite the monsoon quarter.
Coal India delivered outstanding operational performance and reported record sales and production volumes for the sixth consecutive month this fiscal. In H1FY24, Coal India's production stood at 333 million tonne, a growth of 11.3% or 34 million tonne YoY.
We believe higher volumes, improved rake availability, and growth in demand from both the power and non-regulated sectors is likely to drive margins higher, more than offsetting the impact of lower e-auction premiums compared to FY23.
We revise our FY24E/FY25E Ebitda higher by 77%/83% to factor in higher volumes, better realisations, and lower cost of production. We value Coal India at five times FY25E (four timtes earlier) enterprise value/Ebitda to arrive at a revised target price of Rs 394/share (Rs 157 earlier).
Upgrade to 'Buy'.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime 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 BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
