{"id":263421,"date":"2019-03-11T06:57:10","date_gmt":"2019-03-11T06:57:10","guid":{"rendered":"http:\/\/infralive.com\/web\/?p=263421"},"modified":"2019-03-11T06:57:10","modified_gmt":"2019-03-11T06:57:10","slug":"psu-stock-call-hold-coal-india-shares-target-price-rs-243-threat-to-profitability","status":"publish","type":"post","link":"https:\/\/infralive.com\/web\/psu-stock-call-hold-coal-india-shares-target-price-rs-243-threat-to-profitability\/","title":{"rendered":"PSU Stock Call: \u2018Hold\u2019 Coal India shares, target price Rs 243; threat to profitability"},"content":{"rendered":"<p>Coal India\u2019s (CIL) shipments rose 3% y-o-y to 51.5mt in February, 2019. Key highlights: (i) shipments of large subsidiaries\u2014MCL and SECL\u2014rose 2% and 4%, respectively; (ii) production grew 6.5% y-o-y to 58.1mt led by MCL and SECL; and (iii) pit-head inventory estimated at 35mt as of February end leading to improved coal availability. Going ahead, we expect: (a) CIL to report 4.5% y-o-y growth in shipments in FY19; and; (b) e-auction premium could dip given the inventory build-up. Maintain Hold with `243 target price. The stock is currently trading at 9.5x FY21e EPS.<\/p>\n<p>Production picks up, inventory estimated at 35mt<\/p>\n<p>CIL\u2019s February, 2019 shipments rose 3% y-o-y to 51.5mt, with production rising 6.5% y-o-y to 58.1mt. For us, the greatest succour is 4\/17% uptick in MCL\u2019s (major subsidiary) shipments\/production volume in February. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Coal India\u2019s (CIL) shipments rose 3% y-o-y to 51.5mt in February, 2019. Key highlights: (i) shipments of large subsidiaries\u2014MCL and SECL\u2014rose 2% and 4%, respectively; (ii) production grew 6.5% y-o-y to 58.1mt led by MCL and SECL; and (iii) pit-head inventory estimated at 35mt as of February end leading to improved coal availability. Going ahead, we expect: (a) CIL to report 4.5% y-o-y growth in shipments in FY19; and; (b) e-auction premium could dip given the inventory build-up. Maintain Hold with `243 target price. The stock is currently trading at 9.5x FY21e EPS. Production picks up, inventory estimated at 35mt [&hellip;]<\/p>\n","protected":false},"author":44,"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-263421","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\/263421","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\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=263421"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/263421\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=263421"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=263421"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=263421"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}