Coal India share price hits 52-week high as brokerages raise target price on strong Q2 results
Coal India share price extended rally to hit a fresh 52-week high on Monday after the company’s better-than-estimated earnings for the quarter ended September 2023 cheered analysts. Coal India shares gained as much as 4.76% to a high of ₹347.50 apiece on the BSE after certain brokerages raised target price on the stock. The world’s largest coal miner, Coal India (CIL), reported a 9.85% increase in revenue and a 12.51% increase in net profit year-over-year during the second quarter of FY24.
Considering the huge demand from the power sector, Coal India has maintained its FY24 target dispatch to the power sector at 610 mt. The Ministry of Power has set FY24 electricity generation target at 1,750 bu (growth of 7.2% YoY) of which, the share of thermal power is expected to be over 75%. Read here: Coal India Q2 FY24 results: profit rise by 12.51% YoY This, analysts believe, augurs well for Coal India to achieve strong coal production in the next few years.
Global brokerage Jefferies upgraded Coal India to ‘Buy’ from ‘Hold’ and raised the target price to ₹385 per share. The brokerage house also increased earnings per share estimates by 18-42%. Motilal Oswal Financial Services also raised the target price on Coal India shares to ₹380 per share, while retaining its ‘Buy’ rating.
“In line with the strong performance, improved outlook on volume, e-auction premiums, and lower costs, we have increased our EBITDA estimates by 16%/13% for FY24/FY25. Coal India remains our top pick in the mining sector," Motilal Oswal said. (Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) JM Financial said India is clocking all-time high peak power
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