Buy Coal India, target price Rs 275: ICICI Direct

ICICI Direct has buy call on Coal India with a target price of Rs 275. The current market price of Coal India is Rs 235.25. Time period given by analyst is a year when Coal India price can reach defined target.

Coal India, incorporated in the year 1973, is a Large Cap company (having a market cap of Rs 144978.18 Crore) operating in Mining sector.

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


Financials
For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 40362.36 Crore, up 9.82 % from last quarter Total Income of Rs 36754.29 Crore and up 17.01 % from last year same quarter Total Income of Rs 34495.71 Crore. Company has reported net profit after tax of Rs 5455.96 Crore in latest quarter.

The company’s top management includes Mr.Pramod Agrawal, Mr.Punambhai Kalabhai Makwana, CA.Kamesh Kant Acharya, Mr.B Rajeshchandar, CA.Denesh Singh, Prof.G Nageswara Rao, Mrs.Nirupama Kotru, Mr.V K Tiwari, Mr.B Veera Reddy, Mr.Vinay Ranjan, Mr.Debasish Nanda, Dr.Arun Kumar Oraon. Company has Ray & Ray as its auditors. As on 31-03-2023, the company has a total of 616 Crore shares outstanding.

Investment Rationale
Going forward, for CIL, the brokerage assumes coal sales volume of 750 million tonnes(MT) for FY24E and 800 MT in FY25E. Further, the brokerage expects CIL to report consolidated EBITDA margins of 23.0% for FY24Eand 22.8% for FY25E.

Promoter/FII Holdings
Promoters held 66.13 per cent stake in the company as of 31-Mar-2023, while FIIs owned 7.84 per cent, DIIs 20.89 per cent.