IIFL Securities Stock Idea: Buy Coal India with Target Rs 473

On April 12, IIFL Securities has issued a buy recommendation for Coal India, with a target price set at Rs 473. The current market price of Coal India stands at Rs 460.45, indicating a potential upside of approximately 2.7%. This recommendation is driven by the company's strong financial performance, healthy balance sheet, and favorable industry outlook. Coal India, the largest coal producer in the world, is poised to benefit from the expected increase in demand for coal in the coming years, providing a positive outlook for the stock.

About Coal India:

Coal India Limited (CIL) is a Maharatna public sector undertaking company headquartered in Kolkata, India. It is the largest coal producer in the world and accounts for over 80% of India's total coal production. CIL was incorporated in 1975 and is listed on the National Stock Exchange of India (NSE). The company has a total of eight subsidiaries, including Central Coalfields Limited, Eastern Coalfields Limited, and Northern Coalfields Limited. CIL's main products include coking coal, non-coking coal, and lignite. The company has a total of 83 coal mines spread across India.

52 Week Price Trend:

Coal India, a leading coal producer in India, is currently trading at Rs. 460.45, hovering near its 52-week high of Rs. 487.75. This indicates a strong uptrend in the stock, as it has rebounded significantly from its 52-week low of Rs. 207.6. The positive sentiment towards the stock can be attributed to factors such as the company's robust financial performance, strong demand for coal, and favorable government policies. Investors are anticipating further growth in the company's earnings and dividends, contributing to the overall positive outlook for Coal India.

Stratzy's MOST Analysis:

Coal India has received an "AAA" rating from Stratzy's MOST framework, indicating a very low fundamental risk. This rating is based on the company's strong management, positive outlook, robust safety measures, and consistent trend. Coal India has a proven track record of profitability and growth, along with a strong presence in the domestic coal industry. The company's focus on safety and environmental sustainability has also been recognized by Stratzy. The "AAA" rating reflects Coal India's overall financial stability, operational efficiency, and growth potential.

Company's Fundamentals:

Coal India (NSE: COALINDIA) is a leading coal producer in India, known for its high-quality coal reserves. The company's stock fundamentals indicate strong value and dividend return potential. Its Stock PE ratio of 9.29 suggests that it is currently trading below its intrinsic value, offering investors a potential upside. The PB Ratio of 3.91 indicates that the company's market value is fairly priced compared to the value of its assets. Notably, Coal India's Dividend Yield of 5.48% provides investors with a consistent and attractive income stream, making it an appealing option for those seeking both growth and income. Overall, the fundamental metrics of Coal India suggest a well-valued stock with good dividend yield potential, making it worth considering for long-term investment strategies.

Fundamental and Technical information provided in this blog were last updated on 12 Apr, 2024

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