One can assume between Rs1000-1500/t of coal as cost saving for the company.
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Sir, How big do you see the opportunity from selling the coal in the open market?
See it doesn’t matter whether u sell in open market or use yourself. The mine production capacity is well defined. And unlike iron ore, it’s not that easy to increase production of coal. So one need to assume they will produce at full capacity and sell the surplus. Benefit will remain the same
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@Rakesh_Arora Sir, they have availability of coal linkage also. So can Prakash continue getting supply under linkage for its captive use and simultaneously sell commercial coal in market from its mine.
Kindly also advise your views on the management and Company as a whole and also about market perception for the Company.
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Overall profitability of the company is not great. Iron ore mine benefit is already in the numbers, Coal will be additional. Company can go to Rs600-700cr EBITDA range. Confidence level on management is low and market perception is not that great. Stock can go up further as markets are being crazy. Personally I think there are better stories in the market.
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