Top Stocks to Buy: Stock Recommendations for March 16, 2026 Week Motilal Oswal Financial Services Ltd has recommended Coal India and State Bank of India (SBI) as the top stock picks for the week starting March 16, 2026. Coal India is highlighted for its strong position in the evolving global and domestic coal market. Rising liquefied natural gas (LNG) prices and constrained global gas supply are driving utilities to shift from gas-based power generation to coal, which is expected to boost coal demand and pricing. The recent rise in coal prices is beneficial for realizations, particularly in the e-auction segment, which typically offers higher margins compared to long-term fuel supply agreements. Additionally, India’s growing electricity demand and continued reliance on coal for baseload power are projected to sustain strong off-take from the power sector. Coal India’s low-cost production base, improving realizations from non-FSA and washed coal sales, and robust free cash flow generation support its resilient balance sheet and stable earnings outlook. State Bank of India is recommended for its strategic advantage in the credit market, with systemic loan growth exceeding 13% and management projecting strong credit growth ahead. The bank’s healthy retail, small and medium enterprise (SME), and corporate segments, combined with stable deposit funding and controlled repricing, are expected to drive a sustainable 14% loan compound annual growth rate (CAGR) over FY26–28. Margin resilience and operating leverage underpin a positive profitability outlook. Domestic net interest margins (NIMs) are targeted above 3%, with a stable cost-to-income trend. The bank also benefits from easing funding costs and improving fee income.#coal_india #e_auction #motilal_oswal_financial_services_ltd #state_bank_of_india #the_times_of_india
Coal India rises after foreign brokerage raises target price Coal India's stock climbed 1.27% to Rs 449.05 following a foreign brokerage's decision to increase its target price for the stock to Rs 485. The brokerage cited reasonable valuations and improved earnings prospects as key factors behind the move. The firm expects Coal India's earnings to grow at a compound annual rate of 9% over the next three fiscal years (FY26-FY28), driven by higher e-auction premiums, rising dispatch volumes, and a recovery in power demand. The brokerage also revised its earnings estimates for FY26-FY28, raising them by 1% to 4%. This adjustment factors in stronger e-auction realizations, with dispatch volumes projected to grow at a 5% annual rate. Total dispatches are expected to rise from approximately 735 million tonnes in FY26 to around 810 million tonnes by FY28. The report highlighted the potential for a rebound in electricity consumption, particularly amid forecasts of intense summer conditions and weaker monsoon patterns, which could lead to higher power demand. The brokerage noted that rising international coal prices are positively impacting domestic e-auction premiums, further supporting Coal India's financial outlook. The company maintains a dominant position in India's coal market, accounting for about 60% of the country's total coal demand and nearly 75% of domestic coal production. The brokerage emphasized that Coal India remains an attractive investment due to its strong balance sheet, net cash position, and consistent dividend payouts. The state-owned company is primarily engaged in coal mining and production, with major consumers in the power and steel sectors. Other sectors, such as cement, fertilizers, and brick kilns, also rely on its coal supply. On a consolidated basis, Coal India's net profit fell 15.#power_demand #coal_india #e_auction #foreign_brokerage #steel_sector
Jefferies raises Coal India target price, says valuation reasonable The brokerage firm Jefferies has increased its target price for Coal India, citing a reasonable valuation and improved earnings outlook. The firm raised its FY26–28 earnings estimates by 1–4%, driven by higher e-auction premiums and a modest recovery in dispatch volumes. Jefferies noted that Coal India’s earnings trajectory is expected to improve, with a projected 9% compound annual growth rate (CAGR) over the next three fiscal years, following a 21% decline in earnings per share (EPS) over FY24–26E. The analysis highlights a potential revival in profitability as power demand and realisations recover. Jefferies models dispatch volumes to grow at a 5% CAGR over FY26–28, with total dispatches rising from 735 million tonnes in FY26E to 810 million tonnes in FY28E. The firm expects Coal India to benefit from a rebound in electricity consumption, supported by forecasts of intense summer conditions and a higher probability of weak monsoons. It noted that subdued power demand had previously constrained dispatches, with volumes rising just 1% year-on-year in FY25 and declining 3% in 11MFY26. However, Jefferies believes this trend should reverse as structural demand for power strengthens. On pricing, the firm highlighted higher international coal prices as a near-term positive for domestic e-auction realisations. Global thermal coal benchmarks have risen about 16% over the past week, and Jefferies is incorporating an e-auction premium of 63–69% over linkage coal for 4QFY26–FY28, compared to a long-term average of 76%. The report noted that e-auction volumes account for approximately 10% of Coal India’s total dispatches.#jefferies #coal_india #nntp #e_auction #fy26
