Coal India, incorporated in the year 1973, is a large cap company with a market cap of Rs 93180.45 crore, operating in mining sector.
Coal India’s key products/revenue segments include other operating revenue and coal for the year ending 31-Mar-2020.
Investment rationale
The brokerage expect CIL’s performance to improve on the back of demand traction from the power sector and higher e-auction volume/premium. On cash accretion, Edelweiss expects receivables to reduce progressively.
Given the company’s improving operating outlook, the brokerage raises the target PE to 9x (from 7.5x), in line with its historical average.
Financials
For the quarter ended 31-12-2020, the company has reported a consolidated total income of Rs 24334.62 crore, up 9.43 % from last quarter’s total income of Rs 22237.82 crore and down 1.09 % from last year same quarter’s total income of Rs 24602.19 crore. Company has reported net profit after tax of Rs 3083.95 crore in latest quarter.
Promoter/FII Holdings
Promoters held 66.13 per cent stake in the company as of Dec 31, 2020, while FIIs held 6.5 per cent, DIIs 22.15 per cent and public and others 5.22 per cent.
