{"id":372489,"date":"2020-09-08T11:45:35","date_gmt":"2020-09-08T06:15:35","guid":{"rendered":"https:\/\/infralive.com\/web\/?p=372489"},"modified":"2020-09-08T11:45:35","modified_gmt":"2020-09-08T06:15:35","slug":"maintain-buy-on-coal-india-with-fair-value-of-rs-195","status":"publish","type":"post","link":"https:\/\/infralive.com\/web\/maintain-buy-on-coal-india-with-fair-value-of-rs-195\/","title":{"rendered":"Maintain \u2018buy\u2019 on Coal India with fair value of Rs 195"},"content":{"rendered":"<p>Weak on expected lines. Coal India reported weak earnings in Q1FY21 on the back of 21% yoy decline in volumes, and aggravated by 6.7% yoy decline in blended realisations. Reversal of the overburden provision of Rs 2.5 bn salvaged earnings to some extent resulting in Ebitda decline of 68% yoy to Rs 15.7 bn. Improvement in eauction premiums as well as a more healthy 9.6% yoy growth in dispatches in August 2020, lend hope for an improved earnings profile from hereon. Maintain BUY with revised fair value of Rs 195\/share (from Rs 215\/share earlier).<\/p>\n<p>Net sales at Rs 13.8 bn declined 34% yoy (KIE: Rs 19.2 bn) due to lower commodity prices (aluminum: -16% yoy; alumina: -33% yoy). Covid-19 impacted volumes at both aluminum and alumina divisions. Ebitda at Rs 1.3 bn declined 40% yoy (KIE: Rs 284 mn) due to high operating leverage partly offset by inventory build-up of Rs 4.4 mn. Net income of Rs 166 mn was down 83% yoy and 84% qoq on lower other income.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Weak on expected lines. Coal India reported weak earnings in Q1FY21 on the back of 21% yoy decline in volumes, and aggravated by 6.7% yoy decline in blended realisations. Reversal of the overburden provision of Rs 2.5 bn salvaged earnings to some extent resulting in Ebitda decline of 68% yoy to Rs 15.7 bn. Improvement in eauction premiums as well as a more healthy 9.6% yoy growth in dispatches in August 2020, lend hope for an improved earnings profile from hereon. Maintain BUY with revised fair value of Rs 195\/share (from Rs 215\/share earlier). Net sales at Rs 13.8 bn [&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-372489","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\/372489","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=372489"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/372489\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=372489"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=372489"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=372489"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}