Motilal Oswal is bullish on Coal India recommended buy rating on the stock with a target price of Rs 185 in its research report dated August 12, 2021.

August 19, 2021 / 02:13 PM IST

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India’s specialty chemicals industry is a decadal growth opportunity and it is still not too late to participate in the value creation process. We prefer CRAMS/CSM players Navin Fluorine (Navin) and PI Industries (PI) as they provide long-term earnings visibility. We also like UPL due to robust growth outlook and reducing debt concerns and SRF due to rising contribution from the chemicals business, JM Financial research report.

Motilal Oswals research report on Coal India

COAL’s 1QFY22 result highlights the benefit of a recovery in Power demand, leading to improved offtake and profits. Adjusted EBITDA (excluding OBR) jumped 64% YoY to INR46b. We expect profitability to recover in FY22E (+24% YoY). Capex run-rate is likely to increase in the near term, but higher dispatches and some normalization in receivables should aid cash generation and maintain dividends (dividend yield: 12%).


Outlook

We reiterate our Buy rating with a TP of INR185/share, based on 4x FY22E EV/EBITDA.

For all recommendations report, click here

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