Jefferies has reiterated its Buy rating on Coal India, reducing the target price to ₹570 from ₹600, which implies a potential upside of approximately 24% from the current market price of ₹459.95.
Key Insights from Jefferies’ Report
- Weak Q2 Results: The brokerage noted that Coal India’s Q2 results were below expectations, impacting its outlook.
- Support from Rising Power Consumption: Jefferies expects increasing power consumption to drive volume growth for Coal India.
- Stabilizing E-Auction Prices: The sharp decline in e-auction prices appears to have leveled off, which could help stabilize revenues.
- EPS Estimate Cut: Jefferies has trimmed its EPS estimates for FY25-27 by 2-3% but maintains a positive view based on attractive valuation levels.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should consult their financial advisors before making investment decisions.
