Coal India shares rally 3% after Q4 result. Should you buy, sell or hold?

Synopsis

Coal India shares: Coal India's shares saw a emergence aft reporting a 12% YoY summation successful nett net for Q4FY25, reaching Rs 9,593 crore, contempt a flimsy dip successful revenue. Production experienced a marginal decrease, but offtake remained steady, indicating unchangeable demand. Brokerages person mixed opinions, with Motilal Oswal suggesting a 'Buy' and Nuvama recommending a 'Hold'.

Shares of Coal India climbed arsenic overmuch arsenic 2.9% connected Thursday to Rs 394.8 connected the BSE aft the state-owned institution reported a 12% year-on-year emergence successful consolidated nett net to Rs 9,593 crore for the 4th ended March 2025, compared to Rs 8,530 crore successful the aforesaid play past year.

Revenue from operations successful the January-March 2025 play declined marginally by 1% to Rs 37,825 crore. The aforesaid stood astatine Rs 38,213 crore successful the erstwhile twelvemonth period.

Coal India reported a full earthy ember accumulation of 237.69 cardinal tonnes for the 4th ended March 2025, reflecting a 1.7% diminution YoY from 241.75 cardinal tonnes successful Q4FY24.

The marginal driblet successful accumulation comes contempt the company’s absorption connected ramping up output to conscionable home demand, but operational challenges and seasonal factors apt impacted the output.

Coal offtake for the 4th came successful astatine 201.38 cardinal tonnes, mostly level compared to 201.66 cardinal tonnes successful the aforesaid play past year, indicating dependable request from the powerfulness and concern sectors. However, the muted maturation suggests softer traction successful the non-power segment.

Also Read: Stocks successful news: L&T, Titan, Asian Paints, Coal India, Dabur, Kfin Tech

Should you buy, sell, oregon clasp Coal India's stock? Here’s what brokerages say:

While gross remained flat, a driblet successful worker costs supported an 11% YoY emergence successful EBITDA. However, measurement maturation remains a concern. The brokerage expects a 3% measurement CAGR for FY25–27E, supported by higher realisations, including a Rs 300/tonne terms hike astatine NCL from May 2025. Despite constricted net growth—EBITDA CAGR besides estimated astatine 3%—Coal India offers an charismatic 6.5% dividend yield, with a projected dividend per stock of Rs 25.

Motilal Oswal

The brokerage noted that Coal India delivered a decent show successful Q4FY25 pursuing a muted archetypal fractional of the fiscal year. It highlighted the company’s absorption connected expanding its ember washer capacity, which is expected to heighten its marketplace stock successful some home coking and non-coking ember segments.

Additionally, the absorption is concentrating connected expanding ember mines, with backing to beryllium sourced done interior accruals or, wherever needed, imaginable borrowing. MOSL projects Coal India to registry an 8% measurement CAGR during FY25–27.

Coal India stock terms performance

(Disclaimer: Recommendations, suggestions, views and opinions fixed by the experts are their own. These bash not correspond the views of The Economic Times)

...moreless

...moreless