BSE Code: | NSE Code: | ISIN: | Sector:
Research Report Detail
|Report Date||Call||Price@Call||Target Price
|Current Status||Time Horizon|
|Open|| Long (1Y)
HDFC Securities maintains buy on Coal India
(CIL) recent performance has been uninspiring: flat offtake, lowest
FSA realisations since 3QFY12 despite prices hikes, and weak
e-auction premia. This has weighed on the numbers with LTM EBITDA down
27% and adjusted PAT (ex-OBR provisions) down 25% YoY. Coal offtake
should improve hereon, given restocking demand from power plants.
Third party sampling for 100% of its dispatches, lower taxation and
continued discounts given to landed parity prices should ensure
bottoming out of realisations.