Buy Coal India, target price Rs 245: Axis Securities

Axis Securities has buy call on Coal India with a target price of Rs 245. The current market price of Coal India Ltd. is Rs 219.1. Time period given by analyst is one year when Coal India Ltd. price can reach defined target.

Coal India Ltd., incorporated in the year 1973, is a Large Cap company (having a market cap of Rs 136103.86 Crore) operating in Mining sector.

Coal India Ltd. key Products/Revenue Segments include Other Operating Revenue and Coal for the year ending 31-Mar-2022.



Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 36086.68 Crore, up 4.61 % from last quarter Total Income of Rs 34495.71 Crore and up 38.99 % from last year same quarter Total Income of Rs 25963.12 Crore. Company reported net profit after tax of Rs 8858.21 Crore in latest quarter.

Investment Rationale
In Jul’22, coal dispatch volumes from the ministry of coal for CIL stood at 57.21 MT, up 8% YoY (YTD coal despatch till Jul’22 is now at 232 MT, up 10% YoY). The strong Jul’22 dispatch numbers indicate that the company may easily achieve its sales volume target of 700 MT in FY23.

Promoter/FII Holdings
Promoters held 66.13 per cent stake in the company as of 30-Jun-2022, while FIIs owned 6.54 per cent, DIIs 22.48 per cent.