Coal India Share Price Soars Amidst Bullish Market
ππ₯ 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
ππ¦ Motilal Oswal Securities Ltd. has advised buying Coal India with a target price of βΉ600 per share. The stock closed at βΉ522 on July 31, with the potential to rise by 15%. However, on Monday (August 5, 2024), the share was trading at βΉ507, down by 3.37%.
ππ CLSA has given an ‘Outperform’ rating on Coal India, raising its target price from βΉ480 to βΉ580 per share. Meanwhile, Jefferies has also recommended buying Coal India with a target of βΉ520.
Financial Outlook and Performance
π°π 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.
ππ 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
πΌπ In the first quarter of the financial year 2020-25, Coal India’s consolidated revenue rose by 1% to βΉ36,464 crore, with a net profit increase of 4% to βΉ10,944 crore. Coal production increased by 8%, while sales saw a 6% growth.
πΈπ The company reported an EBITDA of βΉ14,338 crore, up by 5.6%, with an EBITDA margin of 39.3%. The book value per share increased by 13% to βΉ152.11. Coal India also incurred a capital expenditure of βΉ3,331 crore during the quarter.
Stock Performance and Market Capitalization
ππΉ 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 βΉ542 and a low of βΉ226.10 on the BSE. The company’s market capitalization exceeds βΉ3.33 lakh crore.
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