The price of Indian coal shares was added 2 percent intraday on November 24 after the announcement that the state-run corporate board will meet on November 29, 2021 to consider and approve the payment of interim dividends for 2021 -22, if any.
Indian coal has fixed December 7, 2021 as a “recording date” for interim dividend payments in equity stocks for the financial year 2021-22, if declared by the Board, the company said in the exchange of exchanges.
The largest coal producer in the country reported consolidation profit after tax (PAT) from Rs 2,933 Crore, fell 1 percent from Rs 2,952 Crore in the same quarter the previous year, lost estimates. The decline was 8 percent compared to RS 3.174 Crore Consolidated Pat reported in the June quarter.
Consolidated income from operations at RS 23,291 Crore rose 10 percent from RS 21,153 Crore in the quarter in accordance with the previous year. However, consolidated income from operations decreased by 8 percent from Rs 25,282 Crore in the first quarter of this financial year.
CLSA has maintained a “buy” ranking in stock, with a target at Rs 210 per share, 32 percent reversed from the current market price.
Q2 income before interest, tax, depreciation and amortization (EBITDA) is below a higher cost estimate and lower realization but EBITDA EX-OBR (0VER expense removal) fell 5 percent Qoq to Rs 272 a ton. Receivables fell to Rs 14,900 Crore, he said.
Citi has a “neutral” call in stock and has cut the target price to Rs 160 from Rs 185 per share. Q2 e-auction premiums are muted, lack of visibility in the catalyst, however, further beauty can be limited because domestic coal supply increases.
With ESG problems, significant re-racing may not be easy, the research company said.
Domestic research company ICICI Securities has maintained a “buying” rating, with RS 234 price target, with an estimated volume ofttake for FY22E / FY23E each at 625mnte / 655mnte. It expects an increase of 47 percent of the current market price.
“We expect dividend payments to be high, which leads to results 12 percent with current prices, because the incremental capex in a diverse segment is expected to be funded primarily by debt,” he said.
Stock traded at Rs 159.45, up RS 3.25, or 2.08 percent, during the day. It touched the highest intraday RS 160.55 and Low Intraday Rs 155.65.