ICICI Direct Upgrades Rating On Mining PSU Stock From Hold To Buy, TP Rs 260/Share

ICICI Direct in its recent report on Coal India Ltd. (CIL), a Maharatna CPSE, upgrades its rating from Hold to Buy with a target price of Rs 260/share. According to the brokerage's given target price, if the stock is purchased at the current market price, it can fetch up to 17% potential return. Coal India is a Mining sector large-cap PSU stock having a market capitalisation of Rs 1,37,274 crore.

Coal India's Current Market Price, 52 Week Low/High, Returns

Coal India is currently trading at Rs 222.80/share, up 0.34% from the previous close. The stock gained 1.36% in the past 1 week, however, it fell 0.53% in 1 month. It gave 13.62% positive return in the past 1 year. It gave the highest 58.49% positive return in the past 3 years. Whereas, in the past 5 years it gave 21.26% negative return.

The stock recorded its 52 week high on 9 November 2022 at Rs 263.40/share and 52 week low on 12 May 2022 at Rs 164..65/share, respectively.

Healthy traction in volume augurs well...

According to ICICI Direct, CIL's share price has given a return of ~30% in the last 12 months (from ~Rs 172 in April 2022 to ~Rs 223 levels in April 2023). "Coal India reported healthy growth in volume for FY23 wherein it slightly bettered its production volume guidance of 700 MT. Going forward, we expect healthy traction in volumes to continue. Hence, we upgrade the stock from HOLD to BUY. We value CIL at Rs 260, 4.5x FY24E EV/EBITDA," The brokerage has said.

About - Coal India Ltd.

Coal India (CIL) is one of the largest coal producers in the world. In FY22, CIL produced 623 million tonnes (MT) while offtake was at 662 MT. CIL has 345 mines (as on April 1, 2021) of which 151 are underground, 172 open cast and 22 mixed mines. CIL has extensive mining capabilities. It possesses advanced technology in open cast mining.

Disclaimer - The stock has been picked from the brokerage report of ICICI Direct. 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 consult with certified experts before making any investment decision.