Analyst Corner: Maintain ‘buy’ on Coal India with TP of Rs 180
Another month of improved offtake in dispatches, with volumes at 55.1 mt, registering a 37.6% YoY increase in May 2021. For the first two months of FY22, Coal India’s offtake now remains higher by 38% YoY.
Offtake growth in May 2021 comes on the back of: a) a 15% rise in coal-based generation (based on initial data from POSOCO), amid a 7% rise in overall power demand, and b) re-stocking of inventory at power plants (up 5 mt MoM).
