Daiwa Capital Markets has buy on Coal India, target price Rs 290

Daiwa Capital Markets has a buy rating on Coal India in the long term with a target price of Rs 290. Shares of Coal India ended down 0.4% at Rs 211.05 on Thursday while BSE Sensex closed 320.62 points up at 41,626.64.

Company Financials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 20382.63 crore, down -12.23% from last quarter sales of Rs 23223.00 crore and down -.08% from last year same quarter sales of Rs 20398.65 crore. The company has reported net profit after tax of Rs 3524.25 crore in the latest quarter.


The company’s top management includes Mr.Anil Kumar Jha, Mr.B Dayal, Mr.B L Gajipara, Mr.R P Srivastava, Mr.Sanjiv Son, Mr.Satyendra Nath Tiwari, Mr.V K Thakral, Mr.Vinod Kumar Tiwari, Ms.Reena Sinha Puri. Company has Ray & Ray as its auditors. As on 30-09-2019, the company has a total of 6,162,728,327 shares outstanding.

Investment Rationale

The company's production rose by 7.2% YoY in December and dispatches rose by 2%, on a lower base while production volume improved across subsidiaries. Coal India could target 630 MT for FY20 by focusing on faster ramp-up in volumes from the top 35 mines, said Daiwa.