Views on Coal India 4QFY2015 Results - Angel Broking

Views of Mr. Rahul Dholam (Sr. Research Analyst - Metal & Mining, Angel Broking) on Coal India 4QFY2015 Results:

Revenue and EBITDA ahead of estimates

Coal India 4QFY2015 revenues increased 3.9% yoy to INR 20774cr, slightly ahead of our estimate of INR 20187cr. EBITDA too was ahead of our expectations at INR 5400cr vs our estimate of INR 5226cr, but came in lower than the consensus estimate of INR 5450cr. EBITDA margin improved 50bp yoy and 640bp sequentially to 26% led by higher e-auction volumes during the quarter and better cost absorption. Production and offtake increased 6% and 4% yoy, respectively. Production numbers in April and May 2015 have been in-line with our estimates and we expect CIL to achieve production of 534MT as against the target of 550MT. We retain our BUY recommendation on the stock and value it at 8x FY2017E adjusted EBITDA to arrive at our target price of INR 425.

Shares of COAL INDIA LTD. was last trading in BSE at Rs.405.6 as compared to the previous close of Rs. 388.35. The total number of shares traded during the day was 952459 in over 13876 trades.

The stock hit an intraday high of Rs. 409.7 and intraday low of 391.1. The net turnover during the day was Rs. 386651091.

Source : Equity Bulls

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