Long on COAL INDIA (CMP - 230)Coal India (CIL) has reported another quarter of excellent earnings in Q1FY23. Revenue increased 38.8% YoY to Rs351bn, supported by 10.6% YoY. Expected revenue growth of 25.01% for next year is more than last 3 year CAGR revenue growth of 2.53%. This stock offers good dividend returns and has been generating better return on equity than bank FD. The current price is less than it's intrinsic value. It is good time to consider, as stock is not in overbought zone.
I believe Coal India Ltd will continue to perform well as factors which were at play in the past two quarters will continue – high thermal power demand, high international coal prices and subsequent increase in demand for domestic coal, leading to higher e-auction premiums. So, one can add to there portfolio for long term. The stock has completed its rounding bottom structure and one can consider the levels mentioned in the chart.
