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CLSA, ICICI Securities Say ‘Buy' This Maharatna Stock For Potential Upside Of Up To 47%
Coal India shares in trade on November 24, 2021 ranked among the top Nifty gainers. The scrip added close to 3 percent intra-day and settled at a price of Rs. 159.10, after having hit day's high price of Rs. 161.65 per share as against the previous close of Rs. 156.20 per share.
Coal India board to meet on November 29 to consider and approve interim dividend for the fy 22
On the previous day, the company via an exchange filing informed that the meeting of the Board of Directors of the Company is scheduled on 29/11/2021 ,inter alia, to consider and approve payment of Interim Dividend for 2021-22, if any. The Company has fixed Tuesday, 7th December'21 as the 'Record Date' for the purpose of payment of Interim Dividend on Equity Shares for Financial Year 2021-22, if declared by the Board.
Q2fy22 performance of Coal India
Missing estimates, the largest coal producing company of India-Coal India for the second quarter of the Fy 22 has logged a consolidate PAT of Rs. 2933 crore, a 1 percent decline in comparison to Rs. 2952 crore logged in the same quarter a year ago. Revenue from operation on a consolidated basis however declined sequentially while gained YoY to Rs. 23,291 crore.
Brokerages Rating/ view on the scrip of Coal India
CLSA -the global research firm has maintained 'Buy' call on the stock with a target price of Rs. 210 per share, which is an upside of 32 percent from the last traded price of Rs. 159.1.
"The Q2 earnings before interest, tax, depreciation and amortisation (EBITDA) were below estimates on higher costs and lower realisations but EBITDA ex-OBR (0ver burden removal) fell 5 percent QoQ to Rs 272 a tonne. Receivables fell to Rs 14,900 crore", says the global brokerage firm.
Likewise, leading domestic brokerage firm ICICI Securities retains it "buy" rating on the scrip with a target price of Rs 234. The brokerage views offtake volume estimates for FY22E / FY23E at 625mnte/655mnte, respectively. "We expect dividend payout to be high, leading to a 12 percent yield at current prices, as incremental capex in diversified segments is expected to be funded primarily by debt," it said.
Citi on the scrip of Coal India has a 'neutral' rating, simultaneously it has lowered the target price to Rs. 160 from Rs. 185 per share. The Q2 e-auction premiums were muted, lacking visibility on catalysts, however, further upsides could be limited as domestic coal supply improves.With ESG concerns, a significant re-rating may not be easy, the research firm said.
| Brokerage | Rating on the Coal India scrip | Target price | Potential upside |
|---|---|---|---|
| CLSA | Buy | Rs. 210 | 32% |
| ICICI Securities | Buy | Rs. 234 | 47% |
| Citi | Neutral | Rs. 160 (Reduced from earlier Rs. 185 price target |
Disclaimer:
Buy call for the above mentioned scrip is being given by few of the brokerages.Readers should not construe it to be an investment advice in the listed scrip. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.
