{"id":262642,"date":"2019-03-06T06:09:42","date_gmt":"2019-03-06T06:09:42","guid":{"rendered":"http:\/\/infralive.com\/web\/?p=262642"},"modified":"2019-03-06T06:09:42","modified_gmt":"2019-03-06T06:09:42","slug":"analyst-corner-coal-india-maintain-hold-with-target-price-of-rs-243","status":"publish","type":"post","link":"https:\/\/infralive.com\/web\/analyst-corner-coal-india-maintain-hold-with-target-price-of-rs-243\/","title":{"rendered":"Analyst corner| Coal India: Maintain \u2018hold\u2019 with target price of Rs 243"},"content":{"rendered":"<p>Coal India\u2019s shipments rose 3% year-on-year to 51.5 MT in February 2019. Key highlights: 1) shipments of large subsidiaries \u2014 MCL and SECL \u2014 rose 2% and 4%, respectively; 2) production grew 6.5% y-o-y to 58.1 MT led by MCL and SECL; and 3) pit-head inventory estimated at 35 MT as at February end, leading to improved coal availability. Going ahead, we expect: a) Coal India (CIL) to report 4.5% y-o-y growth in shipments in FY19; and 2) e-auction premium could dip, given the inventory build-up. Maintain \u2018hold\u2019 with `243 target price. The stock is currently trading at 9.5x FY21E EPS.<\/p>\n<p>CIL\u2019s February 2019 shipments rose 3% y-o-y to 51.5 MT, with production rising 6.5% y-o-y to 58.1 MT. For us, the greatest succour is 4%\/17% uptick in MCL\u2019s (major subsidiary) shipments\/production volume in February. Local issues at SECL also seem to have eased as its shipments\/production rose 2%\/6%. On production outpacing shipments for the fourth straight month, we estimate inventory at 35 MT as at February end. We envisage non-regulated end users to benefit from the improved coal availability.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Coal India\u2019s shipments rose 3% year-on-year to 51.5 MT in February 2019. Key highlights: 1) shipments of large subsidiaries \u2014 MCL and SECL \u2014 rose 2% and 4%, respectively; 2) production grew 6.5% y-o-y to 58.1 MT led by MCL and SECL; and 3) pit-head inventory estimated at 35 MT as at February end, leading to improved coal availability. Going ahead, we expect: a) Coal India (CIL) to report 4.5% y-o-y growth in shipments in FY19; and 2) e-auction premium could dip, given the inventory build-up. Maintain \u2018hold\u2019 with `243 target price. The stock is currently trading at 9.5x FY21E [&hellip;]<\/p>\n","protected":false},"author":39,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[198,130,138],"tags":[],"class_list":["post-262642","post","type-post","status-publish","format-standard","hentry","category-coal-the-financial-express","category-newspapers","category-the-financial-express"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/262642","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=262642"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/262642\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=262642"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=262642"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=262642"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}