Stock Market

This PSU stock cheaper than Rs 200 will earn big, ‘Buy’ rating of the brokerage; Check Target Price

Buy on Coal India: This stock of less than Rs 200 has given a return of about 62 percent during the last one year. In future also this stock has the power to give excellent returns to the investors.

Coal India share BUY call: After the record rally in the market, a period of volatility is being seen. Meanwhile, the outlook for investing in many stocks is becoming very strong. The shares of the brokerage house company are looking bullish in view of the prospects of domestic support of the state-owned coal company Coal India Ltd. This stock of less than Rs 200 has given returns of about 62 percent to investors during the last one year. In future also this stock has the power to give excellent returns to the investors. Brokerage house ICICI Securities has given a Buy (Coal India BUY) position in Coal India with a target of Rs 234.

Coal India: Expected over 38% return

The valuation of the stock market is very high. In such a situation, many shares have become very expensive. At the same time, the valuation of Coal India’s stock is still attractive. So far this year, it has increased by about 45 percent. At the same time, in the last one year so far, this stock has given returns to the investors up to 62 percent. Despite this, the valuation of the stock is attractive. Brokerage house ICICI Securities has set a target of Rs 234 while advising to buy in this stock. In this sense, investors can get a return of more than 38 percent from the current price (Rs 169).

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What does brokerage report say

According to a report by brokerage house ICICI Securities, the offtake volume of the company has grown by over 11 per cent year-on-year in October 2021 and 19.2 per cent in the first 7 months of FY 2022. May reach all-time high level in FY 2022. The main reason for this was the increase in power demand during September-October, reduction in coal power plant stock, spurt in power prices on exchanges and global coal prices reaching record high levels due to shortfall in China.

Apart from this, Coal India Management has indicated to increase the prices in the current situation. ICICI Securities has given a ‘Buy’ rating to Coal India with a target price of Rs 234. The brokerage house says that the company can give a dividend of Rs 20-25 per share.

(Disclaimer: The investment advice here is given by the brokerage house. These are not the views of dgmartpro Business. Please consult your advisor before investing.)

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