Underweight Coal India, target Rs 330
The domestic and global glut of coal is likely to keep E-auction prices in check. Cash could reduce materially from here on a large buyback, said the JPMorgan note
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| Updated: JPMorgan upgrades Coal India to neutral from underweight with a 12-month target price of Rs 330 as recent price hike and dividend yield provide support, said the brokerage note.
The recent price hikes provide earnings visibility to FY17-18 and the percentage of market-linked coal sales has already increased sharply from current 10%-12%.
The domestic and global glut of coal is likely to keep E-auction prices in check. Cash could reduce materially from here on a large buyback, said the JPMorgan note.
The near-term production growth is likely to remain muted, but news on linkage auction to drive stock.
The recent price hikes provide earnings visibility to FY17-18 and the percentage of market-linked coal sales has already increased sharply from current 10%-12%.
The domestic and global glut of coal is likely to keep E-auction prices in check. Cash could reduce materially from here on a large buyback, said the JPMorgan note.
The near-term production growth is likely to remain muted, but news on linkage auction to drive stock.
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