Coal India share price rises 4% post Q4 earnings: Should you Buy, Sell or Hold the stock?
Coal India Share price gained 4% during intraday trades on Friday post Q4 results posted by the company after the market hours on Thursday. Coal India had reported consolidated net profit at ₹8,640.5 crore for the quarter ending March, which grew 25.8 percent YoY. The same came better than the consensus analyst estimate of ₹6,826 crores.
The net profit growth for Coal India was helped by rise in earnings before interest tax depreciation and amortisation (Ebitda) that came in at ₹11,338 crores as per analysts calculations and better than consensus estimate of ₹10,132 crores. Ebitda margins stood at 30.3% for the quarter. Also Read- Max Estates' shares jump 7% to new high, soar 27% in 2 sessions; here's why A better operating performance helped by fall in input cost and employee costs helped , leading to good growth in earnings despite tepid topline growth.
Revenue from operations for the quarter stood at ₹37,410 crores (versus consensus estimate of ₹36,909 crores) reporting a 3.5% growth from Q3FY24, though revenues were down 2% from Q4FY23 Coal India production during Q4FY24 stood at 241.75 million tonnes of raw coal versus 224.16 million tonnes in the year ago quarter. Coal offtake stood at 201.665 million tonne for the quarter versus 186.877 in the year ago quarter rising 8% y-o-y. Analysts at Nuvama Institutional Equities sid that employee cost may normalise in FY25.
They expect Coal India volumes to rise 5% CAGR (compound annual growth rate) on improving power demand over FY24–26. s they have marginally cut FY25 estimated Ebitda by 2% factoring in higher employee cost, they also have reduced target price to ₹537 for Coal India. Also Read- Multibagger Stock: Netweb Technologies advanced 147% in just 6 months, up 270%
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