Buy Coal India, target Rs 380: Citigroup

Citigroup maintains a buy rating on Coal India with a 12-month target price of Rs 380. Round I of linkage auction concluded recently, and Round II to commence soon.

Round I for sponge iron saw muted response while Round II for cement is likely to commence in a week.

Citigroup expects CIL buyback percentage to be higher as cash is high on the standalone books. A price hike, ongoing linkage auctions does alleviate concerns on EBITDA due to wage revisions.