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Jefferies Projects Coal India Share Price to Hit ₹500 Amid Strong Demand
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CNBC TV18•25-09-2026, 12:55
Jefferies Projects Coal India Share Price to Hit ₹500 Amid Strong Demand
- •Jefferies maintains a "buy" recommendation on Coal India, setting a target price of ₹500 per share, indicating an 18.5% upside.
- •The brokerage notes a significant drop in coal stocks at power plants to just seven days, compared to a 10-year average of 15 days, alongside accelerated power demand growth.
- •Jefferies estimates a 5% compound annual growth rate in Coal India's dispatch volumes from FY26-29 and anticipates higher global coal prices will support e-auction prices between ₹3,000 and ₹3,200.
- •After an expected 12% decline in EPS from FY24-26, Jefferies projects a 6% CAGR improvement in Coal India's EPS over FY26-29.
- •Coal India's valuations are considered attractive at nine times the one-year forward adjusted price-to-earnings ratio and a 7% dividend yield, with 16 out of 26 analysts recommending a "buy".
Key Questions Answered
Jefferies maintained a buy recommendation on Coal India shares with a target price of ₹500 per share, projecting an 18.5% potential upside from its trading level.
Jefferies estimates a 5% compound annual growth rate in dispatch volumes for FY26-29, driven by power demand growth accelerating from 1% to 9% between April and August, alongside lower power plant coal stocks and higher global coal prices supporting e-auction prices.
Coal India reported a net profit of ₹8,852 crore, up 0.63% year-on-year, while revenue grew 7.8% to ₹46,254.8 crore. However, its EBITDA declined by 4.1% to ₹12,069 crore, and the EBITDA margin contracted from 29.3% to 26.1%.
