Shares of Coal India rose nearly 1% on Monday after the state-owned coal miner said it produced 46.59 million tonnes of coal in May, a decline of 1.1% from the year-ago period. In a BSE filing on June 2, Coal India said it had produced 47.12 million tonnes of coal in May 2018.
Meanwhile, coal offtake during May this year fell about 1.4% to 52.09 million tonnes compared with 52.81 million tonnes in the year-ago period, Coal India added. Coal offtake is the amount of coal supplied from the coal pitheads. Coal offtake could be more than the amount produced as it may include earlier pithead stock.
The Coal India stock has also seen an upward momentum after the company posted stellar set of numbers for the March quarter due to strong realisations.
The company’s profit in the March quarter grew by 363% year-on-year to Rs 6,027 crore, while revenue increased by 7.5% to Rs 28,546 crore.
Coal India’s earnings before interest, tax, depreciation and amortisation (Ebitda) surged by a whopping 4,122% to Rs 8,211.9 crore during the quarter and margins spiked to 28.77% against 0.73% in the corresponding period of the previous fiscal year.
After the earnings, Citi gave a ‘buy’ rating on Coal India, raising target price to Rs 320 from Rs 300 per share. Citi said the company offers an attractive dividend yield, adding that it values Coal India at a premium given its resource base and limited exposure to global volatility.
CLSA also maintained its ‘buy’ rating on the Coal India stock with a target price of Rs 290 compared to Rs 275 earlier. The brokerage firm said the March quarter operating income was higher than estimate, led by better-than-expected realisations, though it now expects flattish earnings per share over FY19-21.
Yes Securities has also given a ‘buy’ recommendation on Coal India with a target price of Rs 302 per share.
At 10:50am, shares of Coal India were trading at Rs 255.50 apiece, up 0.8%, on BSE.
Comments
0 comment