The shares of the largest government-owned coal producer gained up to 3 percent after the company beat Q4 estimates, prompting a brokerage to raise its target price.
With a market capitalization of Rs 2.38 lakh crore, the shares of Coal India Ltd were trading at Rs 387.70 per share, increasing around 1.02 percent as compared to the previous closing price of Rs 383.80 apiece.
Q4 Highlights
The shares of Coal India Ltd have seen positive movement after the company beat Q4 estimates, revenue increased by 3 percent on a quarter-on-quarter basis from Rs 36,859 crore in Q3FY25 to Rs 37,825 crore in Q4FY25. Further, revenue decreased by 1 percent year on year, from Rs 38,213 crore in Q4FY24 to Rs 37,825 crore in Q4FY25.
The company’s net profit increased by 13 percent on a quarter-on-quarter basis, from Rs. 8,491 crore in Q3FY25 to Rs. 9,593 crore in Q4FY25. Further, net profit magnified significantly by 12 percent year on year from Rs 8,530 crore in Q4FY24 to Rs 9,593 crore in Q4FY25.
The company posted a weak FY24-25 performance, with revenue surging 1 percent from Rs 142,324 crore to Rs 143,369 crore. Net profit plummeted 6 percent, from Rs 37,369 crore to Rs 35,302 crore, reflecting weak profitability over the previous financial year. The Board of Directors approved the final dividend for the financial year 2024-25, Rs. 5.15 per share of the face value of Rs 10.
Additionally, Coal India Ltd (CIL) and AM Green Ammonia (India) Pvt Ltd signed a nonbinding MoU in Kolkata to explore supplying renewable energy from CIL’s 4.5 GW projects to AM Green’s upcoming green ammonia facility in Kandla or other potential locations.
Analyst Coverage
Citigroup, one of the well-known brokerages globally, gave a ‘neutral’ rating on the PSU stock while raising its target price to Rs 395 from 390 apiece, indicating a potential upside of 3 percent from the previous close price of Rs 383 per share.
Citi noted that Coal India’s Q4 EBITDA, excluding OBR adjustment reversal, was 6% above estimates. Blended realisations and volumes stayed flat year-on-year. E-auction realisations dipped 2% QoQ but rose 2% YoY. While prices remain stable, Citi sees limited upside ahead due to high existing coal inventory levels.
Operational highlights
In FY 2024-25, Coal India reported a 1% rise in coal production to 781.05 million tonnes and coal offtake to 763.06 million tonnes. Overburden removal (OBR) also increased by 3% to 2,018.20 million cubic meters, indicating improved operational performance compared to FY 2023-24.
Written by Abhishek Singh
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