Buy Maharatna Mining Stock To Seize 13.21% Potential Rally, TP Rs 330: Sharekhan

Brokerage firm Sharekhan has assigned buy call to large cap mining sector stock, Coal India with target price of Rs 330 per share. Current market price of Coal India stock is Rs 291.55 per share on BSE after an intraday rally of 1.67%. If you buy Coal India stock at current market price of Rs 291.55, you can fetch likely return of 13.21%. Coal India shares witnessed a gain of 40% in last 6-months and soared 149% in last 3-years. Check details below pertaining to Coal India stock:

Coal India Stock Performance & Return: Last trading price of Coal India stock is Rs 291.55 per share on BSE. Its 52-week high price is Rs 293.30 per share and 52-week low price is Rs 207.70 per share, respectively. The large cap company has a market capitalisation of Rs 1,79,674.34 crore. Coal India stock offered a rally of 36% in last 1-year, gained 75% in last 2-years, and rose 149% in last 3-years. In last 1-month, Coal India share gained 28%.

Coal India Valuation: According to Sharekhan, "Coal India Limited (CIL) has levers to sustain its strong earnings growth momentum, given its focus on ramping up coal production to 780mt/850mt/1000mt in FY2024E/FY2025E/FY2026E, which implies a production CAGR of 12% over FY2023-FY2026E, improving volume mix with rising share of NPS (up 43% y-o-y in 5MFY24) and benefit of operating leverage. Robust FCF generation would mean sustained high dividend payout (average of 60% in the last five years). Valuation of 6.4x its FY2025E EPS is attractive and, hence, we maintain our Buy rating on CIL with a revised PT of Rs. 330."

Coal India Financials: The state-owned company on August 8, 2023 announced a decline of 10% in its consolidated net profit at Rs 7,941.4 crore as against Rs 8834.22 crore declared in the corresponding quarter of last year. Revenue from operations of Coal India declared at Rs 35, 943.21 crore, up 2.5% as against Rs 35,092.17 crore declared in the year ago quarter, according to its BSE filing. Its total incomes soared 3.9% to Rs 37,521.03 crore in the quarter under consideration as against Rs 36,086.68 crore announced an year ago.

Coal India About: CIL is a Maharatna company - a privileged status conferred by Government of India to select state owned enterprises in order to empower them to expand their operations and emerge as global giants. Coal India Limited (CIL) the state-owned coal mining corporate came into being in November 1975. With a modest production of 79 Million Tonnes (MTs) at the year of its inception CIL today is the single largest coal producer in the world and one of the largest corporate employer with manpower of 272445 (as on 1st April, 2020). CIL functions through its subsidiaries in 84 mining areas spread over eight (8) states of India, according to its official website.

Disclaimer

The stock has been picked from the brokerage report of Sharekhan. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.