NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Coal India Ltd.’s Q3 FY24 revenue rose 3% YoY to Rs 362 billion, and it was in line with our estimate of Rs 348 billion, led by higher volumes/fuel supply agreement realisation.
Blended average selling price was down 6% YoY to Rs 1,727/ tonne, and FSA ASP was up 3% YoY to 1,532/ tonne. While e-auction ASP declined 34% YoY to Rs 3,321/ tonne, the e-auction premium stood at 117% (higher than our estimate of 70%).
The e-auction premium, which moderated in Q2 FY24 to 83%, moved in tandem with the International coal prices. This led to an improved e-auction premium of 117%. The e-auction premium is currently above its historical average and is likely to be ~108% in FY24.
Adjusted Ebitda (net of over burden removal) increased 6% YoY to Rs 119 billion, 41% above our estimate of Rs 85 billion, owing to lower-than-expected employee and input costs, which was partially offset by the increase in contractual expenses. Excluding OBR, Ebitda rose 10% YoY to Rs 113 billion (51% above our estimate).
In line with the strong performance, improved outlook on volume, higher e-auction premiums, and lower costs, we have increased our Ebitda estimates by 15%/9%/10% for FY24/FY25/FY26.
The stock is trading at 4.7 times on FY26E enterprise value/Ebitda. We reiterate our 'Buy' rating with a revised target price of Rs 490, valuing the stock at 5.5 times FY26E EV/Ebitda.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
RECOMMENDED FOR YOU
![](https://images.assettype.com/bloombergquint/2021-05/ad574ac7-6fd2-4608-9b1d-7b6d9dc5e1bc/Range_of_products_manufactured_by_Emami_Ltd___Source_Company_website_.png?rect=0%2C0%2C3500%2C1969&auto=format%2Ccompress&format=webp&w=75)
Emami - Steady Growth; Ebitda Margins Grew From Its Lowest In The Last Five Years: Dolat Capital
![timelogo](/images/amp-time.png)
![](https://images.assettype.com/bloombergquint/2024-05/eb5fac89-a23b-41dc-bc82-4f0684ca303f/Awfis.jpg?rect=0%2C0%2C3500%2C1969&auto=format%2Ccompress&format=webp&w=75)
Awfis Space Solutions Q1 Results Review - Delivering On Guidance; Compounding Story Intact: ICICI Securities
![timelogo](/images/amp-time.png)
![](https://images.assettype.com/bloombergquint/2023-10/7489467a-3a1f-447c-a75e-5f0924abac9d/Hindalco_Industries_Ltd__s_manufacturing_plant_in_Hirakud___Source_Company_website__png_2.png?rect=0%2C0%2C3500%2C1969&auto=format%2Ccompress&format=webp&w=75)
Hindalco Q1 Results Review - Weak Volumes, LME Hedging Impacts The Quarter: Prabhudas Lilladher
![timelogo](/images/amp-time.png)
![](https://images.assettype.com/bloombergquint/2022-11/581d0ce8-d7e9-49bc-90cf-e84633922e2e/Close_view_of_a_circuit_board___Source_pxhere_com_.jpg?rect=0%2C0%2C3500%2C1969&auto=format%2Ccompress&format=webp&w=75)
Syrma SGS Technology Q1 - Strong Revenue Guidance; Weak Margin In The Quarter To Stay Low In FY25: Systematix
![timelogo](/images/amp-time.png)