Coal India Ltd., incorporated in the year 1973, is a Large Cap company (having a market cap of Rs 91331.63 Crore) operating in Mining sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 27974.12 Crore, up 14.96 % from last quarter Total Income of Rs 24334.62 Crore and down -5.11 % from last year same quarter Total Income of Rs 29481.41 Crore. Company reported net profit after tax of Rs 4591.81 Crore in latest quarter.
Investment Rationale
CIL’s Q1FY22 offtake at 160.4mt was the best ever for Q1. Besides, the brokerage sees good potential for cash accretion aided by working capital unlocking as well as steady eauction sales volume/premium. CIL’s biggest achievement in Q1FY22 has been to rationalise production and reduce pit-head inventory to 60mt–lowest level in past six months. Lower inventory results in less grade slippage issues, thus improving FSA realisation. The brokerage is positive on the company’s improving cash generation prospects that would help it maintain dividend yield of 12-15% in FY22 despite an uptick in capex. It maintains ‘BUY/SO’ with TP of INR185 on 9x Q2FY23E EPS.
Promoter/FII Holdings
Promoters held 66.1 per cent stake in the company as of March 31, 2021, while FIIs held 6.5 per cent, DIIs 21.9 per cent and public and others 5.5 per cent.
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