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Coal India Share Price: Buy Coal India, Target Price Rs 258: ICICI Securities

A buy call on Coal India with a target price of 258. Current market price. 179.9 Rs. The time period given by the analyst is one year when the limited price reaches the specified target.

Coal India Limited, incorporated in 1973, is a large cap company (having a market capitalization of Rs 112932.00 crore) operating in the mining sector.

Coal India Ltd. Major products/revenue segments include other operating income and coal for the year ending 31-Mar-2021.


For the quarter ended 31-03-2022, the company reported a consolidated total revenue of Rs 34495.71 crores, up 18.60 % from the total revenue of Rs 29086.35 crores in the previous quarter. The company reported a net profit after tax of Rs 6714.24 crore in the latest quarter.

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Investment rationality
Coal India (CIL) continued to post strong operating numbers, buoyed by higher domestic coal demand and higher international coal prices. In Q1FY23, production / offtake was 159.8mnte / 177.6mnte, 28.9%/10.7% y-o-y respectively. Production increased by a record 35.8mnte YoY in Q1FY23, higher than the YoY increase in the entire FY22 (26.4mnte). With this strong performance, the growth rate now required to reach 700mnte production in FY23 will come down to 8.3% for the remainder of FY23 from the 12.4% required at the start of the year. 153.2mnte of coal was supplied to the power sector, comprising 86.3% of the total offtake, higher than the supply in FY22 (81.6%). Buoyed by this, FSA volumes remain firm, with e-auction volumes booked tepid at 6mnte for Apr-May’22, which brokerage expects to pick up in H2CY22. However, the e-auction premium is expected to compensate for lower volumes at a weighted average of 384% for the same period. Dependence on domestic coal will remain robust and it believes e-auction premiums will increase in FY23, leading to a better FY23 in terms of volumes and prices. Additionally, any FSA price hike will boost earnings and a cut in diesel prices will help lower costs.

Promoter/FII Holdings
Promoters hold 66.13 per cent stake in the company as on 31-Mar-2022, while FIIs hold 6.94 per cent, DIIs 21.76 per cent.

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