Prabhudas Lilladher has given Hold recommendation for Coal India with a target price of Rs. 160 in its research report issued on Jun 18, 2021
Prabhudas Lilladher’s research report on Coal India
Coal India (COAL) reported Q4FY21 earnings in line with our estimates. Adj. EBITDA fell 16% YoY to Rs81.1bn (PLe:Rs81.4bn) due to 5% fall in realisations and 3% increase in costs. Cash & cash equivalents fell 27% YoY to Rs209bn due to lower earnings, high receivables and elevated capex. Sharp increase in capex intensity came as a negative surprise for street as well as for us. Increase in linkage prices would get diluted in mitigating the elevated capex and upcoming wage hike effective from 1st July, 2021. Similarly, E-auction realisations remained subdued despite global prices at multi-year highs.