Coal India has moved higher by 6% to Rs 270, despite of weak April-June (Q1FY14) results, on expectation of earnings improvement by going forward. The stock has bounced back 9% from intra-day low Rs 248, also its record low since listing on BSE.
Coal India has reported 17% year-on-year (yoy) fall in its net profit at Rs 3,731 crore for Q1 due to lower average realisation and an inflationary pressure on fuel and wage costs.
Analyst at Prabhudas Lilladher expects the company’s earnings to improve Q2FY14 onwards on the back of full absorption of 5% increase in noncoking coal prices, improved E‐auction realisations and peaked‐out costs.
Stock witnessed steep correction in the last two months, primarily on account of offer-for-sale and subdued E-auction prices. Nevertheless, the current beaten down valuations and attractive dividend yield at around 7% drive us to maintain our ‘Accumulate’ rating, added report.
Coal India has reported 17% year-on-year (yoy) fall in its net profit at Rs 3,731 crore for Q1 due to lower average realisation and an inflationary pressure on fuel and wage costs.
Analyst at Prabhudas Lilladher expects the company’s earnings to improve Q2FY14 onwards on the back of full absorption of 5% increase in noncoking coal prices, improved E‐auction realisations and peaked‐out costs.
Stock witnessed steep correction in the last two months, primarily on account of offer-for-sale and subdued E-auction prices. Nevertheless, the current beaten down valuations and attractive dividend yield at around 7% drive us to maintain our ‘Accumulate’ rating, added report.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%