Coal India production edged up to 54.46 million tonnes in February 2018 compared to the same month last year but missed the target of 61.43 million tonne.
Global research firm Morgan Stanley has maintained an underweight stance on Coal India with a target of Rs 221. The house is of the view that the production was flat and dispatches were moderated in February 2018.
The firm expects growth rates to remain moderate while higher costs to constrain earnings and dividend payouts.
Coal India production edged up to 54.46 million tonnes in February 2018 compared to the same month last year but missed the target of 61.43 million tonne.
Coal offtake also improved by 4 per cent to 49.97 million tonne (MT) in the month under review but lagged the targeted volume of 52.14 MT, according to a filing by the company.
Coal India has been given a production target of 600 MT for FY 2017-18, an annual growth of 8.3 percent over FY2017-18.
A recent Central Electricity Authority (CEA) report had flagged coal shortage by power plants with as many as 46 coal-fired plants reporting stocks of less than a week as on February 22.
In an interview to CNBC-TV18, Gopal Singh, CMD of Coal India discussed what the implications can be for both Coal India and generally for the availability and price of coal in the country. Singh said that we will see more competition post government's move with regards to commercial mining. He further said that any healthy competition is always good for the industry and the nation.
At 10:05 hrs Coal India was quoting at Rs 309.10, down Rs 3.70, or 1.18 percent. It has touched an intraday high of Rs 311.05 and an intraday low of Rs 307.00.
The company's trailing 12-month (TTM) EPS was at Rs 22.09 per share. (Dec, 2017). The stock's price-to-earnings (P/E) ratio was 13.99. The latest book value of the company is Rs 22.42 per share. At current value, the price-to-book value of the company was 13.79. The dividend yield of the company was 6.44 percent.
