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Multibagger stock: Brokerage predicts further upside amid buoyancy in coal demand to meet energy needs

With expectations of strong performance in H2FY24, driven by robust demand prospects amid industrial growth and increased power consumption, the brokerage sets a target of Rs 87 for the stock, which is currently trading around Rs 64.

Nitin Kumar Edited By: Nitin Kumar @Niitz1 New Delhi Updated on: December 14, 2023 9:11 IST
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Image Source : FREEPIK A young man is resting on the couch while checking the stock market on his laptop.

In a bid to boost the production of coal and meet the country's energy demands, the government is seeking to revive underground mining. According to a PTI report, the domestic power sector imported 35.3 million tonnes (MT) of coal during the April-October period of the current fiscal.

As the country's energy needs continue to grow, domestic brokerage Profitmart has initiated buy coverage on multibagger stock Anmol India which is into the business of coal import, trading and supply.

As per information available on the BSE website, the stock has climbed 52 per cent in the past three months as against 3.15 per cent rise in the benchmark Sensex. On YTD basis, it has surged over 113 per cent and in the past three years, the stock has made investors wealthier by a whopping 858 per cent.

The brokerage said that H2FY24 would be significantly strong as the demand prospects in the medium term is likely to remain robust amid industrial growth and increase in power consumption.

The demand for coal in the country will drive the growth. On the consumption front, it is expected to grow at consistent rate of 8-10 per cent every year as the runway for growth is huge ahead over the next 5 to 10 years ahead.

The brokerage said that the stock looks attractive from a long-term perspective considering the the future growth outlook in the coal trading segment. It has set a target of Rs 87. The stock is currently trading around Rs 64.

Also read | Market opening: Sensex initiates in negative territory at 69,518, Nifty declines to 20,906

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