Buy This Large Cap Maharatna PSU Stock For Rs 262 Target Price: Axis Securities

Axis Securities, a leading brokerage firm has assigned "Buy" rating to Coal India Ltd., for an estimated Rs 262 target price to Coal India. Coal India is a large cap Maharatna Co. engaged in mining sector. It has a market cap of Rs 1,37,336 crore.

Stock Outlook

Friday, 23 September, Coal India's stock closed at Rs 222.85 apiece, after falling 1.85%. Its 52-week low is Rs 139.15 and the 52-week high is Rs 240.50, respectively.

Considering the stock's current market price and the brokerage's estimated target price, stock could surge by 18%.

Returns over the past 5 years

Over a week the stock has fallen 3.55%, giving a negative return. It has given 25.8% in the past 3 months, and 33.16% over a year. It has given 9.94% in the past 3 years, and 12.19% negative returns in the past 5 years. The ROE of the stock is 40.23%.

Coal India Quarterly Results

For the quarter that ended on June 30, 2022, Coal India recorded a consolidated total income of Rs 36,086.68 crore, up 38.99% from the same quarter previous year and up 4.61% from the previous quarter's total income of Rs 34,495.71 crore. In the most recent quarter, the company generated a net profit after tax of Rs. 8,858.21 billion.

During the quarter, Coal India produced 159.75 million tonnes of raw coal, compared to 123.98 MT during the same time last year. The off-take of raw coal increased as well, going from 160.44 MT to 177.49 MT.

About the stock

Coal India is a state-owned Maharatna Company engaged in coal mining sector. With a modest production of 79 Million Tonnes (MTs) at the year of its inception Coal India, today is the single largest coal producer in the world and one of the largest corporate employer with manpower of 248550 (as on 1st April, 2022). Coal India functions through its subsidiaries in 84 mining areas spread over eight (8) states of India. Coal India Limited has 318 mines (as of 1st April 2022) of which 141 are underground, 158 opencast, and 19 mixed mines and also manages other establishments like workshops, hospitals, and so on. Coal India has 21 training Institutes and 76 Vocational Training Centres. Indian Institute of Coal Management (IICM) as a state-of-the-art Management Training 'Centre of Excellence' - the largest Corporate Training Institute in India - operates under Coal India and conducts multi-disciplinary programmes.

Disclaimer

The stock has been picked from the brokerage report of Axis Securities. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before making any investment decision.