Volume growth outlook remains robust

Company

06 Sep 2024 | 5 Min Read

Alok Deora Sonu Upadhyay recommends buying BSE SENSEX S&P CNX at INR 497 with a target price of INR 600, indicating a 21% increase.

Coal India's financial snapshot shows a 12M average value of INR 5688 million and a free float of 36.9%.

The company aims to achieve a 8% CAGR in production volume over FY24-26.

Coal India's e-auction volume is expected to improve, leading to better overall realization.

The company has intensified capex to improve evacuation infrastructure and plans to diversify into renewable energy facilities and coal gasification.

The stock is trading at 4.7x FY26E EV/EBITDA, and the recommendation is to buy with a target price of INR 600/share.