2 April 2020
Update | Sector: Utilities
Coal India
BSE SENSEX
28,265
S&P CNX
8,254
CMP: INR139
TP: INR202 (+45%)
Buy
Dispatches decline even as production ramps up
Foresee near-term headwinds as power demand plummets
Dispatches decline ~10% YoY in Mar’20, ~4% YoY in FY20
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Free float (%)
Financials Snapshot (INR b)
Y/E Mar
COAL IN
6,207
859.1 / 11.4
271 / 119
9/-2/-14
1992
31.0
Coal India’s (COAL) dispatches declined 10.3% YoY to 53.5mt in Mar’20 due to a
sharp fall in demand from the power sector. On the other hand, production
was up 6.5% YoY at 84.4mt led by growth in its key subs (SECL: +22%;
MCL+6%).
For FY20, the company’s dispatches were down 4% YoY at 582mt, while
production declined ~1% YoY to 602mt.
India’s nation-wide lockdown comes at a time when (a) power demand has
largely remained muted (11MFY20: +1.5% YoY) and (b) production at COAL’s
mines has been ramped up following a heavy monsoon season. Accordingly,
inventories at both coal mines and power plants have risen (refer to Exhibits
1/2) – a general trend at the onset of summer, but higher than usual.
On the other hand, with Industrial and Commercial consumers accounting for
nearly ~50% of India’s power demand, generation has been severely dented
over the past one week. A look into March 22
nd
–30
th
data (Exhibit 3) indicates
demand declined ~21% v/s daily three-year averages (2017–19).
In contrast, for
the first 21 days in March, demand was up 2.5%.
In fact, following the country-
wide lockdown (March 25
th
–30
th
), the decline stands steeper at ~25%.
Furthermore, given the must-run status for renewables in the country, the
brunt of the demand decline is being borne by coal-based plants. Generation
from coal-based plants fell ~40% YoY over March 25
th
–30
th
(Exhibit 4).
On account of such a sharp demand drop and higher coal inventories at power
plants, we build in lower dispatches for COAL in FY21 (-5.5% YoY v/s earlier:
+6.5% YoY) (Exhibit 5). While we also anticipate a decline in coal imports
(especially from the non-power sector), a subsequent fall in global coal prices
may pose a risk and eventually impact COAL’s e-auction realizations. We build
in e-auction realizations of INR2,000/t for FY21 (FY20E: INR 2,200/ FY19:
INR2,632).
A large proportion of COAL’s cost is fixed, with employee cost accounting for
~50% of expenses. Moreover, we expect the company to focus on OBR-
removal activities (if lower demand persists) and continue to utilize contractual
employees. Thus, with lower dispatches, negative operating leverage is likely to
kick in.
Working capital could also be stretched with elevated receivables as cash
issues due to lower demand materialize within the power value chain.
Furthermore, we do not expect production to fully mirror the nosedive in
demand in the near term. As a result, inventories could pile up in the interim.
Lower power demand to impact dispatches amid inventory buildup
2020E 2021E 2022E
942.1
236.3
140.2
22.7
-19.7
52.0
43.7
51.9
6.1
2.5
879.9 1,030.5
203.0
110.7
18.0
-21.0
59.2
30.3
34.9
7.8
2.7
308.9
184.1
29.9
66.3
69.7
42.9
49.2
4.7
1.5
Net Sales
EBITDA
PAT
EPS (INR)
Gr. (%)
BV/Sh (INR)
RoE (%)
RoCE (%)
P/E (x)
EV/EBITDA (x)
Shareholding pattern (%)
As On
Promoter
DII
FII
Others
Dec-19 Sep-19 Dec-18
69.1
19.5
8.6
2.8
69.3
19.2
8.7
2.8
72.9
17.6
6.0
3.5
FII Includes depository receipts
Stock Performance (1-year)
Coal India
Sensex - Rebased
310
260
210
160
110
Foresee near-term headwinds as negative operating leverage may kick in
Aniket Mittal
– Research analyst
(Aniket.Mittal@motilaloswal.com); +91 227198 5585
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 Motilal Oswal Financial Services
Coal India
We cut our FY21/22 adj. EBITDA estimate by 24%/5%, given the sharp fall in
demand. However, we expect COAL to tide over the situation in the near term,
given its large cash position (net cash: ~INR300b). We value the stock on 3.5x
Sep’21E EV/EBITDA (v/s 4.5x FY21E EV/EBITDA earlier), given the uncertainty
surrounding demand recovery, implying a target price of INR202/sh. The stock
trades attractively at ~2x FY22E EV/adj. EBITDA (v/s historical average of 7x), P/E
of 5x (v/s average of ~13x), and offers a dividend yield of ~8%. Maintain Buy.
Inventory at Coal India’s
mines has risen.
While it is a general trend,
the number is higher than
that from previous years.
Exhibit 1: Inventory at Coal India’s mines
80
60
40
20
0
47
42
38
30
24
21
25
33
44
75
20
18
FY20
FY16
FY17
FY18
FY19
Source: Company, MOFSL
Moreover, coal stocks at
power plants have
increased.
Exhibit 2: Coal stocks at power plants
60
45
30
15
16
0
31
45
0
10
10
Coal stocks at power plants (LHS)
18
Stocks in days (RHS)
28
30
20
Source: CEA, MOFSL
India’s power demand
declined sharply as the
nation headed into a
lockdown.
Exhibit 3: India’s daily power demand
2020: Daily Power Demand
4,000
+3.8%
vs. avg.
3,500
-0.8%
vs. avg.
+4.9% vs. avg.
-20.7%
vs. avg.
2017-19 (3 yr avg.): Daily Power Demand
3,000
2,500
Source: Ministry of Power, MOFSL
2 April 2020
2
 Motilal Oswal Financial Services
Coal India
Given the must-run status
of renewables, coal
generation has faced the
brunt of demand, declining
th
~40% YoY over Mar 25 –
th
30 .
Exhibit 4: Coal-based generation has seen a major impact
2020: Daily Generation
3,500
3,000
2,500
2,000
1,500
2018-19 (2 yr avg.): Daily Generation
Source: Ministry of Power, MOFSL
Given the fall in demand
and higher coal inventory at
power plants, we build in a
5.5% decline in dispatches
for Coal India in FY21.
Exhibit 5: Expect Coal India’s volumes to decline
Power Generation
YoY (%)
Coal based gen. (b kwh)
YoY (%)
Coal India Volumes (mt)
Growth YoY
FY16
1,169
4.50%
862
7.80%
531
8.60%
FY17
1,236
5.80%
910
5.60%
543
2.20%
FY18
1,303
5.40%
953
4.70%
580
6.80%
FY19
1,372
5.20%
989
3.70%
608
4.90%
FY20E
1,378
0.50%
973
-1.60%
582
-4.30%
FY21E
1,379
0.10%
936
-3.80%
550
-5.50%
FY22E
1,577
14.30%
1,104
17.90%
660
20.00%
Source: Ministry of Power, MOFSL
Exhibit 6: Coal India: Adjusted P&L
Revenue
Power FSA
Non Power FSA
Eauction/MoU
Sales (mt)
YoY (%)
Power FSA
Share (%)
Non Power FSA
Eauction/MoU
Revenue per ton
YoY (%)
Power FSA
Non Power FSA
Eauction/MoU
Cost of Mining (ex. OB)
CoP per ton
YoY (%)
Labor & social OH
Contract
R&M
Others
Adjusted EBIDTA
EBITDA per ton
FY18
858,624
549,091
62,000
247,533
580
6.8
424
73
36
120
1,480
2.6
1,295
1,723
2,062
655,535
1,130
-3.1
616
220
143
151
203,089
350
FY19
995,469
640,826
124,788
229,856
608
4.9
458
75
67
83
1,637
10.6
1,399
1,851
2,777
694,986
1,143
1.1
644
220
144
134
300,483
494
FY20E
942,076
625,873
139,384
176,818
582
-4.3
435
75
75
72
1,619
-1.1
1,438
1,858
2,459
705,808
1,213
6.1
675
234
154
149
236,268
406
FY21E
879,937
586,378
130,110
163,449
550
-5.5
409
74
70
71
1,600
-1.2
1,434
1,859
2,302
676,954
1,231
1.5
699
241
149
141
202,983
369
FY22E
1,030,499
712,509
157,926
160,064
660
20.0
499
76
85
76
1,561
-2.4
1,428
1,858
2,105
721,566
1,093
-11.2
597
238
147
112
308,933
468
Source: Company, MOFSL
2 April 2020
3
 Motilal Oswal Financial Services
Coal India
Exhibit 7: Coal India: Valuation
FY18
Adjusted EBIDTA
Target EV/EBITDA (x)
Target EV
Net debt
Equity value
Target equity value (Sep ’21)
TP (INR /share)
-311,085
-316,302
203,089
FY19
300,483
FY20E
236,268
3.5
826,938
-268,398
1,095,336
FY21E
202,983
3.5
710,440
-318,713
1,029,153
FY22E
308,933
3.5
1,081,266
-381,711
1,462,977
1,246,065
202
Source: Company, MOFSL
2 April 2020
4
 Motilal Oswal Financial Services
Coal India
Financials and Valuations
Income Statement
Y/E March
Net Sales
Change (%)
EBITDA
% of Net Sales
Depreciation
Interest
Other Income
Extra Ordinary
PBT
Tax
Rate (%)
PAT before Min. Int.
Minority Interest
Reported PAT
Change (%)
Adjusted PAT
Change (%)
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Minority Interest
Loans
Deferred tax Liability
Capital Employed
Gross Fixed Assets
Less: Depreciation
Net Fixed Assets
Capital Work in Progress
Investments
Current Assets
Inventory
Debtors
Other Current Assets
Loans and Advances
Cash
Current Liabilities
Payables
Other current liabilities
Net Curr. Assets
Application of Funds
FY15
741,201
5.0
173,354
23.4
23,198
73
65,706
-50
215,839
78,573
36.4
137,266
137,266
-9.2
137,266
-14.1
FY16
780,073
5.2
187,309
24.0
28,259
3,862
59,406
0
214,594
71,719
33.4
142,876
142,876
4.1
142,876
4.1
FY17
783,719
0.5
123,912
15.8
29,101
4,117
55,156
0
145,850
51,660
35.4
94,190
94,190
-34.1
94,190
-34.1
FY18
858,624
9.6
169,507
19.7
30,664
4,318
46,583
73,844
107,264
37,067
34.6
70,198
70,198
-25.5
118,942
26.3
FY19
995,469
15.9
249,771
25.1
34,504
2,750
58,737
0
271,255
96,625
35.6
174,630
174,630
148.8
174,630
46.8
FY20E
942,076
-5.4
183,746
19.5
35,704
4,126
48,076
0
191,993
51,838
27.0
140,155
140,155
-19.7
140,155
-19.7
FY21E
879,937
-6.6
152,763
17.4
37,054
4,167
36,454
0
147,996
37,295
25.2
110,701
110,701
-21.0
110,701
-21.0
(INR Million)
FY22E
1,030,499
17.1
248,602
24.1
37,054
4,209
38,760
0
246,100
62,017
25.2
184,083
184,083
66.3
184,083
66.3
(INR Million)
FY22E
61,627
367,683
429,310
4,068
22,027
-42,692
412,714
661,631
225,699
435,932
136,984
4,622
1,029,126
90,345
127,048
391,553
16,441
403,739
1,193,949
62,476
1,131,473
-164,824
412,714
FY15
63,164
340,367
403,531
658
4,019
-19,591
388,617
448,080
286,929
161,150
51,594
873,074
61,838
85,219
61,808
105,150
559,060
697,201
9,208
687,994
175,873
388,617
FY16
63,164
285,168
348,332
1,048
11,921
-20,445
340,855
234,137
26,824
207,314
59,044
73
841,406
75,692
114,476
241,078
1,024
409,137
766,982
32,972
734,010
74,424
340,855
FY17
62,074
183,194
245,268
3,459
30,078
-27,328
251,477
276,883
55,984
220,900
103,078
106
809,377
89,453
107,359
285,187
358
327,021
881,984
39,002
842,981
-72,607
251,477
FY18
62,074
136,392
198,466
3,625
15,309
-53,551
163,849
325,733
84,805
240,928
137,710
3,443
839,286
64,439
86,892
351,324
10,238
326,394
1,057,518
45,169
1,012,348
-218,232
163,849
FY19
61,627
202,912
264,539
4,068
22,027
-42,692
247,943
401,631
115,888
285,742
136,984
4,622
857,149
55,839
54,986
391,553
16,441
338,330
1,036,554
68,155
968,399
-179,405
247,943
FY20E
61,627
258,974
320,601
4,068
22,027
-42,692
304,005
481,631
151,592
330,039
136,984
4,622
904,902
77,431
129,052
391,553
16,441
290,425
1,072,542
51,621
1,020,921
-167,640
304,005
FY21E
61,627
303,254
364,881
4,068
22,027
-42,692
348,285
571,631
188,646
382,985
136,984
4,622
946,419
89,199
108,485
391,553
16,441
340,741
1,122,725
51,584
1,071,141
-176,306
348,285
2 April 2020
5
 Motilal Oswal Financial Services
Coal India
Financials and Valuations
Ratios
Y/E March
Adjusted EPS
Cash EPS
Book Value
DPS
Payout (incl. Div. Tax.)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Adj. EBITDA
Dividend Yield (%)
EV /ton of Reserves
Profitability Ratios (%)
Debtor (Days)
Inventory (Days)
Payables (Days)
Asset turnover(x)
Profitability Ratios (%)
RoE
RoCE
RoIC
Cash Flow Statement
Y/E March
Adj EBITDA*
Non cash exp. (income)
(Inc)/Dec in WC
Taxes paid
CF from Operations
Capex
Free Cash Flow
(Pur)/Sale of Investments
Interest/dividend
Other investing activity
CF from Investments
Equity raised/(repaid)
Debt raised/(repaid)
Interest paid
Dividend (incl. tax)
Other financing
CF from Fin. Activity
Inc/Dec of Cash
Add: Beginning Balance
Closing Balance
FY15
21.7
31.5
63.9
20.7
112.9
16.7
11.5
5.7
8.2
5.7
79.7
42.0
30.5
4.5
1.9
34.0
34.5
-45.5
FY16
22.6
31.5
55.1
27.4
145.5
12.9
9.3
5.3
6.7
9.4
66.6
53.6
35.4
15.4
2.3
41.0
39.9
-60.6
FY17
15.2
24.2
39.5
19.9
160.3
19.3
12.1
7.4
10.1
6.8
69.9
50.0
41.7
18.2
3.1
38.4
32.7
-40.0
FY18
19.2
29.5
32.0
16.5
103.3
14.8
9.6
8.9
7.1
5.8
66.6
36.9
27.4
19.2
5.2
35.4
58.4
-37.7
FY19
28.3
42.2
42.9
13.1
55.5
4.9
3.3
3.3
1.8
9.4
25.0
20.2
20.5
25.0
4.0
66.0
85.7
-51.7
FY20E
22.7
37.1
52.0
11.4
60.0
6.1
3.8
2.7
2.5
8.1
27.2
50.0
30.0
20.0
3.1
43.7
51.9
-60.0
FY21E
18.0
32.1
59.2
10.8
60.0
7.8
4.3
2.4
2.7
7.7
24.9
45.0
37.0
21.4
2.5
30.3
34.9
-66.0
FY22E
29.9
45.7
69.7
19.4
65.0
4.7
3.1
2.0
1.5
13.9
22.0
45.0
32.0
22.1
2.5
42.9
49.2
-118.7
FY15
211,621
21,428
6,487
-95,721
143,815
-49,014
94,801
9,615
52,871
-9,615
3,857
0
1,935
-73
-155,963
3,844
-150,257
-2,585
561,644
559,060
FY16
215,423
21,565
-26,697
-78,754
131,538
-57,857
73,681
-1
50,349
-3,344
-10,852
0
9,902
-207
-208,302
2,732
-195,874
-75,188
559,060
483,872
FY17
150,634
37,046
60,216
-89,427
158,469
-86,761
71,707
-50
34,642
-209
-52,379
-45,531
18,169
-306
-151,031
2,720
-175,980
-69,890
409,137
339,247
FY18
203,089
-54,587
138,450
-74,329
212,623
-85,293
127,330
-3,332
24,044
-297
-64,878
0
-14,778
-370
-123,238
2,513
-135,873
11,872
327,021
338,893
FY19
300,483
10,718
-48,918
-95,329
166,955
-73,393
93,561
-1,184
31,410
9,054
-34,114
0
6,718
-96
-112,110
3,972
-101,516
31,325
326,394
357,719
FY20E
236,268
16,735
-112,192
-51,838
88,973
-80,000
8,973
0
31,340
-48,660
0
0
-4,126
-84,093
-88,218
-47,904
338,330
290,425
(INR Million)
FY21E
FY22E
202,983
308,933
10,930
10,434
8,761
-8,816
-37,295
-62,017
185,379
248,534
-90,000
-90,000
95,379
158,534
0
0
25,523
28,327
-64,477
0
0
-4,167
-66,420
-70,587
50,315
290,425
340,741
-61,673
0
0
-4,209
-119,654
-123,862
62,998
340,741
403,739
2 April 2020
6
 Motilal Oswal Financial Services
Coal India
Explanation of Investment Rating
Investment Rating
Expected return (over 12-month)
BUY
>=15%
SELL
< - 10%
NEUTRAL
< - 10 % to 15%
UNDER REVIEW
Rating may undergo a change
NOT RATED
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within
following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the
Regulations, is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial
products. MOFSL is a subsidiary company of Passionate Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are
available on www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - MOFSL) is registered with the Securities & Exchange Board of India (SEBI) and is a
registered Trading Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and
National Commodity & Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National
Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance
Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance products.
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available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and
buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other
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any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report
should be aware that MOFSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific
merchant banking, investment banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the
website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental
research and Technical Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated
from MOFSL research activity and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability
or use would be contrary to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong
Kong Securities and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst
Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of
research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity
to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these
securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not
located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under
applicable state laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers
Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any
brokerage and investment services provided by MOFSL , including the products and services described herein are not available to or intended for U.S. persons. This report is
intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as
"major institutional investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which
this document relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration
provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange
Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-
dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this
chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.
registered broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public
appearances and trading securities held by a research analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets
services license and an exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and
Paragraph 11 of First Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL
in respect of any matter arising from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”,
of which some of whom may consist of "accredited" institutional investors as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the
SFA”). Accordingly, if a Singapore person is not or ceases to be such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and
inform MOCMSPL.
Specific Disclosures
1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
2 April 2020
7
 Motilal Oswal Financial Services
Coal India
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The associates of MOFSL may have:
- financial interest in the subject company
- actual/beneficial ownership of 1% or more securities in the subject company
- received compensation/other benefits from the subject company in the past 12 months
- other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
- be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the
company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies)
- received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from
clients which are not considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the
research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
Terms & Conditions:
This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and
may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent
of MOFSL. The report is based on the facts, figures and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in
nature. The information is obtained from publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty,
representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The
report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial
instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL will not treat recipients as
customers by virtue of their receiving this report.
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or
distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for
informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing
in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances.
The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment
objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this
document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this
document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views
expressed may not be suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade
securities - involve substantial risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of
the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and
should not be treated as endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make
modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from
time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to
perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a
separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of
information that is already available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or
may not subscribe to all the views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on,
directly or indirectly, to any other person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or
entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law,
regulation or which would subject MOFSL to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in
all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.
Neither the Firm, not its directors, employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost
revenue or lost profits that may arise from or in connection with the use of the information.
The person accessing this information specifically agrees to exempt MOFSL or any of its
affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such
misuse and further agrees to hold MOFSL or any of its affiliates or employees free and harmless from all losses, costs, damages,
expenses that may be suffered by the person
accessing this information due to any errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263;
Website
www.motilaloswal.com.CIN
no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,
Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst:
INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company
Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth
Management Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is
a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt.
Ltd. which is a group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL.
Research & Advisory services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no
assurance or guarantee of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance
Officer: Name: Neeraj Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* MOFSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National
Company Law Tribunal, Mumbai Bench.
2 April 2020
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