Coal India Ltd saw a 2.01% increase in trading today, with Jefferies forecasting a substantial upsurge in its shares following recent market corrections. Despite challenges, the company remains resilient with promising growth prospects.
Maintaining a ‘buy’ rating, Jefferies sets a target price of Rs 530 per share for Coal India, suggesting a potential 27% increase from the current Rs 416.9. The recent dip in Coal India’s shares presents a lucrative buying opportunity, supported by its robust fundamentals.
Coal India’s shares have dropped by 13% from their peak, rendering them attractive to Jefferies. The brokerage emphasizes Coal India’s significant discount relative to the Nifty 50 PE, signaling an undervalued position. Moreover, the company’s improved volume growth and stabilized e-auction prices further bolster its investment appeal.
Coal India’s Growth Trajectory:
Coal India aims to produce 838 MT of coal in FY 2024-25, with a focus on supplying 661 MT to the power sector. Despite market fluctuations, Coal India remains well-positioned to meet India’s growing power demand efficiently, indicating sustained growth potential.
Conclusion:
Jefferies’ optimistic outlook on Coal India underscores its resilience and promising growth trajectory. With a target price of Rs 530 per share, reflecting a potential 27% increase, Coal India’s shares offer an enticing investment opportunity amidst recent market volatility. Investors are encouraged to consider Coal India’s undervalued position and strong fundamentals for long-term growth prospects in the energy sector.
