Motilal Oswal Reiterates Buy On Mining Sector PSU Stock, Sees 21% Potential Upside

Leading brokerage firm Motilal Oswal reiterates a Buy rating on Coal India Ltd. with a target price of Rs. 290 apiece. The brokerage sees a strong upside of up to 21% from its current level if purchased at the current market price. Coal India is a mining sector Maharatna Status PSU stock. It is a large-cap firm with a market capitalisation of Rs. 1,48,675 crore.

Valuations remain attractive

According to the brokerage, COAL is trading at 3.9x our FY24E EV/EBITDA and 2.2x our FY24E P/B. The demand for power is expected to increase, consequently driving the requirement for higher coal volumes by power plants. "We reiterate our BUY rating on the stock with a revised target price of INR290 (5x EV/EBITDA). We believe COAL is well placed to capitalize on the growth opportunity ahead," Motilal Oswal said.

Stock Outlook

On Wednesday, the share price of Coal India closed 1.25% down at Rs. 241.25 apiece. The stock's 52 week low is Rs. 174.75 apiece and 52 week high is Rs. 263.40 apiece, respectively.

The stock has given 25.06% in the past 1 year. It has given 70.74% positive return in the past 3 years. It has fallen 18.57% in the past 5 years.

Disclaimer - The stock has been picked from the brokerage report of Motilal Oswal. 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.

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Motilal Oswal Reiterates Buy On Mining Sector PSU Stock, Sees 21% Potential Upside, Trading Near 52-Week High

Leading brokerage firm Motilal Oswal reiterates a Buy rating on Coal India Ltd. with a target price of Rs. 290 apiece. The brokerage sees a strong upside of up to 21% from its current level if purchased at the current market price. Coal India is a mining sector Maharatna Status PSU stock. It is a large-cap firm with a market capitalisation of Rs. 1,48,675 crore.

Valuations remain attractive

According to the brokerage, COAL is trading at 3.9x our FY24E EV/EBITDA and 2.2x our FY24E P/B. The demand for power is expected to increase, consequently driving the requirement for higher coal volumes by power plants. "We reiterate our BUY rating on the stock with a revised target price of INR290 (5x EV/EBITDA). We believe COAL is well placed to capitalize on the growth opportunity ahead," Motilal Oswal said.

Stock Outlook

On Wednesday, the share price of Coal India closed 1.25% down at Rs. 241.25 apiece. The stock's 52 week low is Rs. 174.75 apiece and 52 week high is Rs. 263.40 apiece, respectively.
The stock has given 25.06% in the past 1 year. It has given 70.74% positive return in the past 3 years. It has fallen 18.57% in the past 5 years.

Disclaimer - The stock has been picked from the brokerage report of Motilal Oswal. 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.