Khambatta Securities has given Buy recommendation for Anmol India with a target price of Rs. 255 in its research report issued on Aug 26, 2021
Khambatta Securities’ research report on Anmol India
Anmol India Limited (Anmol) is a bulk supplier of imported coal, providing end-to-end coal supply chain management solutions. The company specialises in supplying high GCV coal, USA coal, Indonesian coal, Saudi pet coke and USA pet coke, commanding a sizeable 16% share of the USA coal market in India. A growing and industrialising economy along with increasing urbanisation is expected to drive up energy use as coal is seen to remain India’s energy mainstay for next 30 years. India does not produce adequate quantity of coal to meet the domestic demand while various types, grades and varieties of coal are required for different end uses. As a result, coal imports are expected to remain strong going forward.
At current levels, the Anmol stock trades at an attractive 8.8x FY24E EPS. Assigning a target P/E multiple of 13.0x FY23E EPS, we value Anmol at Rs 255, informing a BUY rating with an upside of 48%.