CIL outlook uncertain, but stock a buy: Equirus
Mumbai: Brokerage Equirus initiated coverage on Coal India with an ‘add’ rating and target price of ?205 by September 2021. Tepid earnings outlook and share sales by the government have increased the uncertainty about the stock’s prospects.
“CIL’s earnings growth will remain tepid unless the government allows the company to increase prices,” said the brokerage’s analysts Ashutosh Tiwari and Siddharth Gadekar, in a recent client note. The hazy earnings prospects could take the sheen off the famed dividend story of India’s largest coal producer. The analysts delved into the key concerns for investors:
