Motilal Oswal Bets BIG On THIS Maharatna PSU Stock With 92% RoE, Time To Buy? Check Target Price

The brokerage sees a 15% upside in Coal India’s share price valuation, citing its crucial role in India’s growing coal demand in the coming years.

Coal India shares were trading 0.03% higher at Rs 391.90 per share on BSE with a market capitalisation of Rs 2,41,332.44 crore. The Maharatna PSU stock touched an intraday high mark of Rs 393.60 per share and an intraday low mark of Rs 390.45 per share. Coal India stock has a return on equity (RoE) of 92.40%.

Coal India Share Price Recommendation

Motilal Oswal, in its Thursday report, maintained a buy rating for the stock. According to the brokerage, Coal India earnings are expected to remain under pressure in the financial year 2025-26 due to a lack of volume growth amid muted power demand as well as a rising share of captive/merchant mining during Apr-Jul’25. Subdued coal prices will also impact the growth.

“We trim our FY26/27E revenue and EBITDA (ex-OBR) by 2/6% and 5/9%, respectively, factoring in the lower volume and rising coal production from captive miners. We expect COAL to post a 2-4% volume CAGR for FY26/27E, while the higher share of e-auction volumes, with a modest premium of ~70% over FY26/27E, will support overall NSR and margins,” stated the brokerage in its report.

Coal India Share Price Target

Coal India shares may see a 15% upside in their valuation in long-term. The brokerage has fixed a target price of Rs 450 per share. “At CMP, the stock is trading at 4x on FY27E EV/EBITDA at its 10-year historical average. We reiterate our BUY rating with a TP of INR450/share, valuing the stock at 4.5x FY27E EV/EBITDA.”

Coal India Share Price Trend

Coal India shares touched a 52-week high mark of Rs 517.6 per share on BSE on 27 September 2024. The stock dipped to a 52-week low mark of Rs 349.20 on 17 February, 2025. Its valuation has increased 5% in two weeks but has declined 19% in one year.