Coal India’s Growth Trajectory: Motilal Oswal Maintains “Buy” Rating

Motilal Oswal Financial Services, a prominent broking firm, has reiterated its “Buy” rating on Coal India’s stock while keeping the target price steady at Rs 520. The brokerage firm remains optimistic about Coal India’s prospects, citing its strategic position to capitalize on future growth opportunities.

In a recent research report, Motilal Oswal highlighted Coal India’s resilience and potential in navigating the evolving energy landscape. Despite slightly trimming the e-auction premium estimates for FY26, the brokerage house has raised expectations for e-auction volumes. Consequently, Motilal Oswal has revised upwards its forecasts for revenue, operating profit, and net profit for FY26, projecting a 1% increase in revenue, an 8% surge in operating profit, and a 7% rise in net profit.

The research report also sheds light on India’s energy dynamics, noting the country’s lag in meeting its renewable energy targets for FY30. Meanwhile, the Ministry of Power has raised the electricity generation target for the current financial year by 7.7% year-on-year, with thermal power expected to account for 75% of the share. This scenario positions Coal India favorably to achieve robust production levels in the coming years.

However, challenges loom as one of Coal India’s subsidiaries faces production constraints due to mine clearances. The company’s stock witnessed a downturn on February 19 following this management commentary, emerging as a key loser in the Nifty 50 index.

Despite this setback, Coal India remains poised for growth, leveraging its operational strengths and market positioning. The brokerage firm’s endorsement underscores confidence in Coal India’s ability to navigate challenges and capitalize on emerging opportunities in the energy sector.

As Coal India charts its course forward, investors monitor developments closely, buoyed by Motilal Oswal’s bullish outlook and the company’s strategic initiatives to enhance production efficiency and sustain growth momentum.

In the dynamic landscape of India’s energy sector, Coal India stands as a pivotal player, driving innovation, and meeting the nation’s evolving energy demands while adapting to regulatory and market dynamics. As the journey unfolds, stakeholders anticipate further milestones and strategic moves that will shape Coal India’s trajectory in the years ahead.


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