Coal India - FY2014 may be relatively modest unless e-auctions revive - Kotak

Soft e-auction realizations (-16% yoy) and low volume growth (2% yoy in FY2014E against 7% yoy in 2013) may lead to moderation in earnings growth, though the revival of e-auction prices could change the prospects for FY2014. Near-term growth notwithstanding, the CMP implies multiples (6X P/E) at steep discount to the IPO valuation and a 5.5% dividend yield, and we maintain our BUY rating with a target price of Rs. 370.

Source : Equity Bulls

Keywords