BSE Code: | NSE Code: | ISIN: | Sector:

NSE
272.80
Change Change %
4.45 1.66%

Updated:17 Nov, 2017, 15:57 PM IST

BSE
272.85
Change Change %
3.90 1.45%

Updated:17 Nov, 2017, 15:48 PM IST

Research Report Detail

Brokerage
Analyst
Report Date Call Price@Call Target Price
Stop Loss
Current Status Time Horizon
Edelweiss
N/A
11-10-2017 Hold 281.30 275.00
N/A
Target Hit Long (1Y)
11-10-2018

Edelweiss downgrades Coal India to hold

We see limited growth triggers as: 1) Higher than expected wage provisions will exert pressure on earnings; 2) CIL needs to take a price hike of 6% versus our estimate of 4% for EBITDA neutrality; and 3) Recent tailwinds likely to translate into estimated volume growth of 8% YoY each in both FY18 and FY19. Moreover, we estimate dividend yield of 4-6% over next 2 years. Factoring in the above, we trim our FY18/19E EBITDA by 19%/7%. On valuation front, our target price of INR285 has been achieved and at current levels the stock is trading expensive at 8.8x FY19E EBITDA and 15.1x FY19E EPS, which is at top-end of CIL's own historical trading range.

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