Coal India Share Price Soars Amidst Bullish Market
📈🔥 On Thursday, August 1st, the Maharatna PSU company Coal India saw a significant increase in its share price, closing with a gain of over 3.5% at the end of the trading day. The mining giant announced its first-quarter results on Wednesday, which has led brokerage houses to be bullish on its shares. The stock has surged by 125% in the past year.
Brokerage Recommendations for Coal India
📊🏦 Motilal Oswal Securities Ltd. has advised buying Coal India with a target price of ₹600 per share. The stock closed at ₹522 on July 31, with the potential to rise by 15%. However, on Monday (August 5, 2024), the share was trading at ₹507, down by 3.37%.
🌐🔍 CLSA has given an ‘Outperform’ rating on Coal India, raising its target price from ₹480 to ₹580 per share. Meanwhile, Jefferies has also recommended buying Coal India with a target of ₹520.
Financial Outlook and Performance
💰📈 Motilal Oswal stated that Coal India has met revenue expectations in the first quarter of the financial year 2025. The company’s cost-saving measures have led to better-than-expected EBITDA margin. It has supplied 90% of the coal required in the power sector, which accounts for over 80% of India’s total electricity production.
📈🔋 The company aims to achieve a production of 83.8 crore tonnes by the financial year 2025. Strong volume outlook, better e-auction premiums, and lower costs have resulted in a positive outlook for Coal India.
Financial Highlights
💼📊 In the first quarter of the financial year 2020-25, Coal India’s consolidated revenue rose by 1% to ₹36,464 crore, with a net profit increase of 4% to ₹10,944 crore. Coal production increased by 8%, while sales saw a 6% growth.
💸📈 The company reported an EBITDA of ₹14,338 crore, up by 5.6%, with an EBITDA margin of 39.3%. The book value per share increased by 13% to ₹152.11. Coal India also incurred a capital expenditure of ₹3,331 crore during the quarter.
Stock Performance and Market Capitalization
📈💹 Coal India’s share price has surged by 125% in the past year and by 40% in 2024 so far. The stock has gained over 33% in the last 6 months, 20% in the last 3 months, and over 15% in the last month. It has touched a 52-week high of ₹542 and a low of ₹226.10 on the BSE. The company’s market capitalization exceeds ₹3.33 lakh crore.
Disclaimer: This is News Coverage with Opinions of Experts and Should Not Be Taken as Direct Market Buying Tip. Market is always subject to risk. We recommend taking our content as research before investing.
