Coal India to list two subsidiaries; check latest target prices

Shares of Coal India inched up on Wednesday after the state-run coal miner shared a clarification on the listing of its two-subsidiaries - Bharat Coking Coal (BCCL) and Central Mine Planning and Design Institute (CMPDI). The company verified that it is looking to list the mentioned subsidiaries.

In its latest clarification Coal India informed the exchanges that activities related to listing of CMPDIL and BCCL, wholly owned subsidiaries of the company are in progress. Through the tendering process, BRLMs have been appointed. "DRHP is under preparation and further update will be provided once filing is made in accordance with applicable law," it added.

Following the update, shares of Coal India added more than 1.1 per cent to Rs 412.95 on Wednesday, with a total market capitalization of more than 2.5 lakh crore. The stock had settled at Rs 408.20 on Tuesday. The stock is down 25 per cent from its 52-week high at Rs 544.70, hit in August 2024.

Coal India has seven coal-producing subsidiaries and one technical and consultancy company. It accounts for over 80 per cent of the domestic coal production. Coal India reported 12 per cent year-on-year YoY rise in consolidated net profit at Rs 9,604.02 crore for the quarter ended March 2025 on the back of higher income, which rose marginally to Rs 41,761.76 crore.

Coal production by the company was almost flat at 62.1 million tonnes (MT) in April as compared to the year-ago period. In 2024-25, CIL produced 781.1 MT of coal, nearly seven per cent less than the company's target for the financial year. The company is targeting a production of 875 MT and offtake of 900 MT in 2025-26 fiscal year.

Phillip Capital continues to believe in the medium-term structural volume growth story as IEA predicted that India`s peak energy demand is expected to grow at 6.3 per cent CAGR till 2027 to 297GW and 34 per cent cumulative rise to 366GW by 2031. It expects as good part of this to be fuelled by coal fired plants

"FY25 volume growth was lacklustre and increased production from private mines puts Coal India`s supremacy at a disadvantage. However, we still feel there is large scope of reduction in imported coal which will fuel partial growth for Coal India. We have assumed 4 per cent volume CAGR over FY25-FY27e. Our target prices stand at Rs 519," it added with a 'buy' tag.

In FY25, Coal India reported its highest sales of 763m tonnes on higher dispatches via e-auctions. With dispatches of 818 million tonnes expected in FY26 and 849 million tonnes in FY27, the company offers volume assurance, driven by mounting demand from the power sector, said Anand Rathi Shares & Stock Brokers.

"Its focus on ramping up of FSA and e-auction volumes, along with enhanced volumes from coal washeries, cost-saving steps and capex would drive performance. As e-auction’s share in dispatches improved in Q4, we expect 101/106 million tonnes of sales via auction-determined prices in FY26/27. We retain our 'buy' rating with a target price Rs 470," it said.

"We have revised our volume growth assumption downwards to 4 per cent for FY26E and 5 per cent for FY27E. This leads to a 5 per cent/6 per cent cut in Ebitda estimates for FY26E/ 27E, respectively. Our valuation remains based on a 5 times EV/Ebitda multiple on FY27E, resulting in a revised target price of Rs 477 (from Rs 500 earlier)," said Antique Stock Broking, with a 'buy' call.