What should investors do with Coal India shares? Here is what brokerages recommend
Coal India share price target: According to CLSA, which maintained an outperform rating on CIL and raised its target price to Rs 480 from Rs 330 per share after the analysts call, the mining giant is likely to see strong volume growth and improvement in its product mix owing to higher non-power sales.
Coal India share price target, Is Coal India a good buy: Many brokerages have revised their targets on Coal India after the state-run dry fuel behemoth revised its production targets for the current financial year as well as the next while lowering an annual volume guidance.
On a post-earnings call with investors, Coal India’s management moderated its output target for the current financial year to 770MT from 780MT, and for the next financial year to 838MT from 850MT, citing land issues in one of the mines of its wholly-owned subsidiary, South Eastern Coalfields Limited (SECL). The PSU’s management also lowered its volume guidance for the year ending March 2024 by 1.0 per cent, but said it expects 9.0 per cent growth the next year. READ MORE
As of February 19, Coal india shares have rallied 111.4 per cent in the past year, sharply outperforming a 24 per cent rise in the benchmark Nifty50 index.
Can you still ride the breakneck surge in Coal India shares?
Here’s how brokerages view the multibagger PSU stock:
| Coal India | ||
| Brokerage | Call | Target Price (INR) |
| Jefferies | Buy | 520 |
| CLSA | Outperform | 480 |
| Citi | Neutral | 430 |
According to CLSA, which maintained an ‘outperform’ rating on CIL and raised its target price to Rs 480 from Rs 330 per share after the analysts’ call, the mining giant is likely to see strong volume growth and improvement in its product mix owing to higher non-power sales.
The foreign brokerage also highlighted that the drop in the e-auction premium in the March quarter, as indicated by Coal India, could be partly offset by higher volumes.
On the call, Coal India’s management also guided for cooling off followed by stabilisation of its e-auction premium, which is the price fetched by the company above the notified prices.
At five times FY26CL EV/Ebitda, which is below its historical average, Coal India valuations are fair while its dividend yield remains elevated at 6-7 per cent, according to CLSA.
Citi maintained a 'neutral' rating on Coal India with a target of Rs 430.
Jefferies kept a 'buy' call on the Coal India stock but lowered its target to Rs 520 from Rs 550 per share.
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