Coal India Share Price: Do you hold this Maharatna PSU stock? Here’s what Morgan Stanley said with revised target price – Markets

Coal India Share Price: Do you hold this Maharatna PSU stock? Here’s what Morgan Stanley said with revised target price - Markets


Coal India Share Price: State-owned Coal India Limited (CIL) announced its earnings for the fourth quarter ended March 31, 2026, on April 27. The Maharatna PSU also declared a dividend for its shareholders in the quarterly results. Following its Q4 results, the brokerage firm Morgan Stanley has revised its target price for this Maharatna PSU stock. If you hold the Coal India Ltd Share, here is what you must know.

Morgan Stanley has maintained its Equal-weight rating on Coal India, with a revised target price of Rs 420, compared with the current market price of around Rs 410, indicating limited near-term upside.

The brokerage has marginally increased its target price, reflecting improved long-term growth expectations for the Maharatna PSU.

The firm has raised its realisation assumptions, supported by stronger coal prices and higher e-auction premiums, which are expected to aid revenue visibility.

However, these positives are largely offset by rising raw material and operating costs, which continue to put pressure on margins.

Factoring in these headwinds, Morgan Stanley has cut its EPS estimates for FY27 and FY28 by 9 per cent and 6 per cent, respectively, signalling concerns over profitability despite a favourable pricing environment.

Altogether, brokerage believes that while Coal India benefits from steady demand and supportive pricing, the upside remains capped due to cost pressures and limited earnings growth.

The Equal-weight rating suggests investors may continue to hold the stock, aligning exposure with benchmark levels rather than taking aggressive positions.

Read more: Bharti Airtel Share Price Target: Morgan Stanley maintains overweight rating on telecom stock ahead of Q4 results – Check latest target price

Maharatna PSU stock, Coal India reported steady numbers in the January-March quarter, with its consolidated profit after tax increasing 12 per cent on a year-on-year (YoY) basis to Rs 10,908 crore. It stood at Rs 9,740.15 crore in the same quarter of the previous financial year.

The company’s revenue from operations reported a YoY growth of 5.8 per cent to Rs 46,490 crore, supported by improved realisations and higher other income. It came in at Rs 43,962 crore in the year-ago period (Q4 FY25).

The consolidated expenses of the company during the fourth quarter of the current fiscal year rose to Rs 37,107.07 crore compared to Rs 34,999 crore in the year-ago period, CIL said in a filing to the BSE.

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) grew 6.2 per cent YoY to Rs 12,673.06 crore in Q4 FY26 as compared to Rs 11,932 crore posted in the same quarter of the financial year. EBITDA margins improved 12 bps YoY to 27.3 per cent in Q4 FY26 against 27.1 per cent in the year-ago period.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)



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