Coal India in focus: State-owned company Coal India shares rose over 3 per cent to an intraday high of Rs 446.70 per share after reporting December quarter results (Q3FY24). The positive momentum was further fuelled by brokerages maintaining a bullish stance on the company, driven by the Q3 results surpassing street estimates. 

Brokerage firm Centrum Broking noted Coal India's robust earnings before interest, taxes, depreciation and amortisation (EBITDA) performance, surpassing estimates at Rs 11,900 crore, marking a 6.2 per cent YoY increase and a major 34 per cent QoQ surge. 

Despite a slight decline in EBITDA per tonne by 2.4 per cent YoY, attributed to a fall in blended realisation, the company saw strength with an 8 per cent YoY rise in sales volume.

Notably, fuel supply agreement (FSA) volume increased by 9 per cent annually, while e-auction volumes witnessed a 53 per cent YoY growth. These factors contributed to a 2.8 per cent YoY increase in revenue, totalling Rs 36,150 crore.

However, the decline in blended coal realisation impacted overall revenues, standing at Rs 1,727 per tonne, down 6.4 per cent YoY, brokerage firm highlighted.

Analysts remain optimistic about Coal India's future performance, incorporating higher volume projections, expecting an increase in financial year 2025/financial year 2026 EBITDA (FY25/FY26 EBITDA) by 23 per cent/28 per cent. 

Therefore, analysts have maintained an add rating with a target price Rs 458 per share. 

On the other hand, brokerage firm JM Financial predicted continued momentum in power demand, with peak power/energy demand recording annual growth of 12.7 per cent/7.6 per cent during April-December 2023. With consistent growth in production and stabilisation in international coal prices, JM Financial reiterated its ‘buy’ rating on the stock with target price of Rs 500.

Overall, both reports highlight Coal India's robust performance, strategic growth initiatives, and favourable market conditions, positioning the company for sustained growth in the foreseeable future.

As of 10:47 am, shares of Coal India were trading 3 per cent higher at Rs 446.05 per share.