Buy Coal India, target price Rs 440: ICICI Securities

ICICI Securities has a buy call on Coal India with a target price of Rs 440. The current market price of Coal India is Rs 366.4. Coal India, incorporated in 1973, is a Large Cap company with a market cap of Rs 223645.41 crore, operating in the Mining sector.

Coal India's key products/revenue segments include Other Operating Revenue and Coal for the year ending 31-Mar-2024.

Financials

For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 37922.98 crore, up 17.85% from last quarter Total Income of Rs 32177.92 crore and down -1.13% from last year same quarter Total Income of Rs 38357.23 crore. The company has reported net profit after tax of Rs 8420.23 crore in the latest quarter.

The company's top management includes Mr.P M Prasad, Mr.Nagaraju Maddirala, Mr.Punambhai Kalabhai Makwana, Mr.Ghanshyam Singh Rathore, Mr.B Rajesh Chandar, Prof.G Nageswara Rao, CA.Denesh Singh, CA.Kamesh Kant Acharya, Dr.Arun Kumar Oraon, Mr.Mukesh Agrawal, Mr.Mukesh Choudhary, Dr.B Veera Reddy, Mr.Vinay Ranjan, Mr.Debasish Nanda, Mrs.Nirupama Kotru. Company has Ray & Ray as its auditors. As on 31-12-2024, the company has a total of 616 crore shares outstanding.

Investment Rationale
Volume growth remains a concern. Despite soft volume growth estimated in FY26, ICICI Securities expects the additional levy at NCLto mitigate the financial impact to a large extent. Taking cognizance of lower-than-expected Feb?25?YTD volumes, I-Sec has lowered volume growth estimate for FY25/FY26 to 1%/4% (earlier 3%/5%). Their revised offtake estimates for FY25E/FY26E work out to 760mt/785mt (earlier 775mt/815mt. The brokerage maintains a BUY with a revised target price of Rs 440 (earlier Rs 455) on an unchanged 7.5x FY27E EPS.

Promoter/FII Holdings
Promoters held 63.13 per cent stake in the company as of 31-Dec-2024, while FIIs owned 8.58 per cent, DIIs 22.54 per cent.