Coal India Q1 Review - Stable Results; Maintain 'Buy': Axis Securities

"BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Axis Securities Report.Financial Performance: Coal India Ltd. posted a decent set of numbers. Revenue (up 3% YoY, down 6% QoQ) beat our estimate by 2% led by higher average selling price (down 4%/6% YoY/QoQ) which stood ahead of our estimate by 2%. Ebitda (down 14%YoY, up 52% QoQ) beat our estimates by 16%, mainly on account of lower raw material costs, which are partially offset by higher-than-expected employee and contractual expenses. In Q4 FY23, Coal India took provision towards employee expenses of Rs 5,870 crore. Attributed profit after tax stood at Rs 7,971 crore, down 10% YoY (up 44% QoQ), beating our estimate led by higher other income and lower depreciation and amortisation expenses. Outlook: With robust production, coal stock at Coal india stood at 53 million tonnes. Also, the coal stock at coal-based power plants stood at 33 mt at the end of July 2023, providing adequate buffer, which could allow Coal India to divert higher coal to the non-power sector. We reduce our Ebitda estimates for FY24/25E by 8%/3% as we reduce our e-auction prices and increase our employee expenses, partially offset by higher overall sales volumes. Valuation and recommendation: We continue to value the stock at 4.0 times one-year forward enterprise value/Ebitda multiple on FY25E adjusted Ebitda. We arrive at our target price of Rs 265/share (from Rs 275/share), implying an upside of 15% from the current market price..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Coal India Q1 Review - Stable Results; Maintain 'Buy': Axis Securities

Availability of coal in FY24 for the non-regulated sector (which includes e-auction volumes) likely to increase.

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Coal India Q1 Review - Stable Results; Maintain 'Buy': Axis Securities

Availability of coal in FY24 for the non-regulated sector (which includes e-auction volumes) likely to increase.

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