Buy Coal India, target price Rs 155: Geojit

Buy Coal India, target price Rs 155:  Geojit

Geojit has buy call on Ltd. with a target price of Rs 155. The current market price of Coal India is Rs 139.15.

Coal India Ltd., incorporated in the year 1973, is a Large Cap company (having a market cap of Rs 86247.38 Crore) operating in Mining sector.

For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 24334.62 Crore, up 9.43 % from last quarter Total Income of Rs 22237.82 Crore and down 1.09 % from last year same quarter Total Income of Rs 24602.19 Crore. Company reported net profit after tax of Rs 3083.95 Crore in latest quarter.

Investment Rationale
The brokerage expects the business to perform well in the short to medium-term, as the demand from power plants would witness sharp increase once their inventory levels deplete. The long-term outlook remains positive with improvement in realization and the ability of the company to protect margins by improving efficiency. It reiterates BUY rating on the stock and roll forward the valuation with a revised target price of Rs. 155 based on 4x FY23E EV/EBITDA.

Promoter/FII Holdings
Promoters held 66.1 per cent stake in the company as of Sept 30, 2020, while FIIs held 7.2 per cent, DIIs 21.9 per cent and public and others 4.8 per cent.

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