Motilal Oswal has given Buy recommendation for Coal India recommended buy rating on the stock with a target price of Rs 185 in its research r with a target price of Rs. 185 in its research report issued on Aug 12, 2021
Motilal Oswal’s research report on Coal India
COAL’s 1QFY22 result highlights the benefit of a recovery in Power demand, leading to improved offtake and profits. Adjusted EBITDA (excluding OBR) jumped 64% YoY to INR46b. We expect profitability to recover in FY22E (+24% YoY). Capex run-rate is likely to increase in the near term, but higher dispatches and some normalization in receivables should aid cash generation and maintain dividends (dividend yield: 12%).
We reiterate our Buy rating with a TP of INR185/share, based on 4x FY22E EV/EBITDA.