Maintain 'reduce' on Coal India – TP Rs.292 - Geojit BNP Paribas Financial Services

- It seems that the company's dispatch target of 470 million ton for FY13 is challenging due to rake shortages and despite the ramp –up of brown field projects.

- Margins also are expected to fall as e-auction volumes and ASP (average sales price) decline.

- After the steep rise in stock price since May, the market value of the stock appears stretched.

- Disappointments on dispatches / ASP would lead to underperformance.

- Upside risks to the target price are positive volume/price surprises or upturn in SEB finances.

Source : Equity Bulls

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