Buy Coal India Ltd., target Rs 375.0 : Centrum Broking

Centrum Broking has Buy call on Coal India Ltd. with a target price of Rs 375.0. The current market price of Coal India Ltd. is 327.65. Time period given by analyst is year, when Coal India Ltd. price can reach defined target. Centrum expects CIL to benefit materially from FSA coal price rationalisation from Q2 which could boost the volumes and earnings and nullify the impact of upcoming wage hikes. It sees earnings triggers like gradual recovery in e-auction realisa tions, start of linkage auction volumes, better FSA realisations with full impact of price hikes and demand recovery from power and non-regulated sectors. It said attractive dividend yield of above 7% is an added positive.