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
Indiaâ€™s specialty chemicals industry is aÂ decadal growth opportunity and it is still not too late to participate in the valueÂ creation process. We prefer CRAMS/CSM players Navin Fluorine (Navin) and PIÂ Industries (PI) as they provide long-term earnings visibility. We also like UPL due toÂ robust growth outlook and reducing debt concerns and SRF due to risingÂ contribution from the chemicals business, JM Financial research report.
Motilal Oswals research report on Coal India
COALâ€™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%).
We reiterate our Buy rating with a TP of INR185/share, based on 4x FY22E EV/EBITDA.
For all recommendations report,Â click here
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