Book profits for 75% holding in Coal India: Prasad Baji
"Based on a risk appetite, may be you can sell everything but the reason for keeping a 25% is just to play the potential upsides."
By 
|
| Prasad Baji, Sr. VP, Edelweiss in an interview with ET Now talks about Coal India.
Rs 325 per share for Coal India, is it a sell for retail and HNI investors then?
Yes, definitely what I would advise is at least 75% of your holding, you should book at that level. Based on a risk appetite, may be you can sell everything but the reason for keeping a 25% is just to play the potential upsides that may come say due to coal pricing etc. but a substantial portion of your holding can be sold at a 325 level.
What’s your take on companies owning coal assets? Do you think they would be re-rated as well once Coal India lists?
Technically Coal India’s valuation is running not just as a coal company but since its model is different, it is selling in India where there is an assured offtake and its pricing will never see a price tag, therefore, it is not typically a commodity play as compared to other coal companies.
Strictly speaking, I would feel that it would not be right to re-rate international coal companies on Coal India valuation because of this difference in business model but somehow there is always some rub-off that does happen but I am actually not too much in favour of that.
Rs 325 per share for Coal India, is it a sell for retail and HNI investors then?
Yes, definitely what I would advise is at least 75% of your holding, you should book at that level. Based on a risk appetite, may be you can sell everything but the reason for keeping a 25% is just to play the potential upsides that may come say due to coal pricing etc. but a substantial portion of your holding can be sold at a 325 level.
What’s your take on companies owning coal assets? Do you think they would be re-rated as well once Coal India lists?
Technically Coal India’s valuation is running not just as a coal company but since its model is different, it is selling in India where there is an assured offtake and its pricing will never see a price tag, therefore, it is not typically a commodity play as compared to other coal companies.
Strictly speaking, I would feel that it would not be right to re-rate international coal companies on Coal India valuation because of this difference in business model but somehow there is always some rub-off that does happen but I am actually not too much in favour of that.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
Related Articles
Tata, Hindalco & Hindustan Zinc remain our top three picks: Prasad Baji, Edelweiss SecuritiesADVERTISEMENT
