Shares of Coal India hit a fresh 52-week high today after the state-owned firm's net profit rose 179 per cent for the quarter-ended June 2022. Coal India stock gained 2.84 per cent to a new high Rs 226.10 against the previous close of Rs 219.85 on BSE.
The share has gained 52.02 per cent in one year and risen 49.78 per cent since the beginning of this year. The market cap of the firm rose to Rs 1.34 lakh crore on BSE.
Total of 8.19 lakh shares of the firm changed hands amounting to a turnover of Rs 18.12 crore on BSE.
The large-cap share hit a 52-week low of Rs 132.80 on August 23, 2021.
Coal India's consolidated net profit rose to Rs 8,834 crore for the first quarter of the 2022-23 fiscal on the back of higher sales.
The miner reported a net profit of Rs 3,174 crore in the same quarter last year.
Sales rose 39.51 per cent to Rs 32,498 crore in the June quarter against Rs 23,293 crore in the corresponding quarter of previous fiscal.
Its profit before tax stood at Rs 12,077 crore in Q1 against Rs 4,335.57 crore in the corresponding quarter of the previous fiscal.
Motilal Oswal gave a target price of Rs 275, which is 25 per cent higher than the current market price of Rs 220.
"Coal India reported a strong, but inline performance in 1QFY23. While sales were ahead of our estimates, adjusted EBITDA and adjusted PAT were in line. The company reported a record high e-auction premium of over 201%. We expect this strong performance to continue throughout FY23. We raise our FY23 EBITDA/PAT estimate by 23% each and the same for FY24 by 9%/11%. We raise our target price to Rs 275 (from Rs 220 earlier), valuing the stock at 4 times FY23 EV/EBTIDA," said the financial services firm.
Kamlesh Bagmar, Deputy Head of Research, Prabhudas Lilladher has given a target price of Rs 225 for the Coal India stock with an accumulate rating.
"We increase our FY23e/FY24e EBITDA estimates of Coal India by 18%/12% on account of higher FSA and E-auction realisations. Maintain accumulate rating with revised target price of Rs 255 (earlier Rs 220) based on EV/EBITDA of 2.5 times FY24e," said Prabhudas Lilladher in its post earnings review.
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