Mining psu stock to buy: Brokerage firm on the stock of Coal India Limited, Maharatna Company of Mining Sector, Bulish is Bulish. After the results, most analysts have advised Buy on stock. The net profit of Mining PSU has decreased by 17% during the October-December quarter of FY 2024-25. Brokerage houses believe that it is on attractive valuation after PSU stock correction and can give up to 43% returns in the next 12 months. However it is necessary to monitor the company’s volume growth. Stock pressure has been feeling for the last one year. Magal has doubled investors’ money in the last five years. Currently, the stock is trading at a discount of 31% from its 52 -week high.
Brokerage bullish on coal India, upsite returns up to 43%
Brokerage firm Antique Has set a target price of Rs 539, retaining the BUY rating on Coal India. In this way, the stock can give an upside return of 43.35% compared to Monday’s closed price in the next 12 months.
Brokerage says that the main reason for stocking of stock is better than increase in volume and e-auction. Imported coal prices remain stable, which is beneficial for e-auction of Coal India.
Brokerage firm Motilal Oswal (Motilal Oswal) It has also set a target price of Rs 480 keeping the BUY rating on Coal India Limited. In this way, the stock can show 28% upside in the next 12 months with a closed price of Monday (January 27). The stock closed at a price of Rs 376 on Monday.
Brokerage says Coal India’s Q3Fy25 performance was better than the second quarter (2QFY25). The amount of e-auction improved and there was some increase in e-auction premium, which helped to increase profits. The company’s focus is on increasing coal-western capacity, which will improve the market share of domestic coking/non-cooking coal.
Brokerage firm ICICI Securities Has advised BUY by upgrading his rating add to Coal India. However, Brokerage reduced the Taregut price from Rs 525 to Rs 455. In this way, the stock can give an upside return of 21% compared to Monday’s closed price in the next 12 months.
Brokerage says it is necessary to monitor the company’s volume growth. Considering the continuous weakness in the power sector, we have reduced the volume growth estimates for FY25/FY26 to 3–5%. The recent price correction and the improvement in e-auction parameters have upgraded the stock rating.
Brokerage firm Nuwama (nuvama) Has retained its Hold rating on Coal India Limited. However, the brokerage firm reduced the target price for stock to Rs 419. In this way, the stock may give upside returns of 11.44% compared to Monday’s closed price in the next 12 months.
Brokerage says that there is no possibility of much decline in stock at the moment, but it is better to enter it again after growth in the volume.
Coal India share history
The stock of veteran PSU Coal India Limited has been feeling pressure for the last one year. The stock has fallen 27.34% in the last six months. While the stock has broken 9.77% in the last one year. However, the stock has given a return of 117.50% in the last five years. The 52 week high of the stock is Rs 544.70 while 52 weeks are 361.30 rupees. The total market cap of stock on BSE is Rs 84,915 crore.
The profit of this legendary government company in the mining sector has come down by 17 percent to Rs 8,491.22 crore in the third quarter. The company said that its profits have declined due to low sales. A year ago, in the same quarter, the company recorded a profit of Rs 10,291.71 crore.
The company said that during the October-December quarter of FY 2024-25, its sales fell from Rs 33,011.11 crore to Rs 32,358.98 crore on an annual basis.
During the December quarter, the total expenditure of Coal India increased from Rs 25,132.87 crore to Rs 26,201.55 crore on an annual basis. Coal India accounts for more than 80 percent of domestic coal production.