PSU Stocks: Strategies for Coal India, NHPC, ONGC, and GAIL Shares

Public sector enterprises such as Coal India, NHPC, ONGC, and GAIL have recently reported their earnings for the third quarter of the fiscal year 2024 (FY24). Subsequently, brokerages have revised their recommendations for these PSU stocks. Here’s a summary of their assessments:

Coal India Share Target Price

Coal India Target Price: Coal India’s Q3 FY24 earnings surpassed expectations, driven by robust volume growth. The company recorded a 3% year-on-year (YoY) increase in revenue to Rs 36,200 crore, primarily attributed to higher volumes and Free Sale Agreement (FSA) realizations. Adjusted EBITDA rose by 6% YoY to Rs 11,900 crore, significantly exceeding estimates due to lower-than-expected employee and input costs. Motilal Oswal maintains a “Buy” rating on Coal India, setting a revised target price of Rs 490. Centrum Broking has assigned the stock an “Add” rating with a target price of Rs 458.

NHPC Share Price Target

NHPC Price Target:
NHPC encountered challenges in Q3 FY24, with its performance impacted by flash floods, resulting in a 20% YoY decline in consolidated net revenue to Rs 2,060 crore. Both EBITDA and adjusted PAT also witnessed significant declines, primarily due to flood-related damage and business losses. Despite these setbacks, JM Financial suggests that NHPC is poised for substantial growth, with a projected 50% increase in installed capacity by FY26/FY27 due to significant hydro and solar capacity additions. The brokerage maintains a “Buy” rating with a target price of Rs 91.

ONGC Target Price:
ONGC reported consistent revenue and EBITDA figures of Rs 34,800 crore and Rs 14,800 crore, respectively, for Q3 FY24. The company’s PAT of Rs 9,500 crore exceeded forecasts by 13%, mainly due to higher other income. Emkay Global maintains a “Buy” recommendation, with a revised target price of Rs 300.

GAIL Target Price:
In Q3 FY24, GAIL made a strategic move with the approval of equity investment in a Coal-to-SNG (Synthetic Natural Gas) project by the Cabinet Committee on Economic Affairs. This initiative is expected to enhance the company’s earnings base and align with India’s objective of reducing dependency on imported methanol and urea. Motilal Oswal suggests buying GAIL shares, setting a target price of Rs 200.

(Note: Recommendations and views expressed by experts are their own and do not necessarily reflect the opinions of Times Network.)

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