Buy Coal India; target of Rs 525: Emkay Global Financial

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Emkay Global Financial's research report on Coal India Over the past 12-18 months, investors were enthused by a large-cap stock delivering volumes growth CAGR of 7-8%, alongside an improving demand outlook resulting in solid earnings momentum. We were also subscribed to this narrative for COAL; however, the growth air-pocket in recent months has weakened that thesis. We see the company missing its FY25 guidance by 35- 40mt (4.

5%), and therefore, we reduce our estimate to 800mt. In addition, there has been news flow around progress on captive coal mines that could displace e-auction volumes. In our assessment, these captive mines could produce 26mt in FY28E, displacing a third of the e-auction offtake.



Outlook All that said, we think the concerns are broadly in the price, whereas the medium-term demand growth outlook and project delivery catalysts are well-placed. We, therefore, reiterate our BUY rating, albeit at a reduced TP of Rs525. For all recommendations report, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.

com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Coal India - 03012025 - emkay.