Jefferies on Coal India
BUY with TP ₹500
@CNBCTV18Live
Below Combination a tailwind for COAL’s volumes
-Coal stocks at power plants have fallen to just 7 days vs 10Y avg of 15 days, while power demand growth has accelerated to 9% in Apr-Aug vs 1% in FY26
Jefferies says
5% CAGR in dispatch volumes FY26-29E
Higher global coal prices to support e-auction prices
E-auction price estimates: ₹3,000-3,200 FY27-29E vs ₹2,962 in FY26 & ₹3,085 in Jun-Q
After 12% EPS decline in FY24-26, expects 6% EPS CAGR FY26-29E
Valuation: 9x 1Y fwd adjusted PE + 7% dividend yield