Leading brokerages recommend ‘subscribe’ on the IPO citing strong market position, attractive valuations, and India’s growing steel demand, though caution on seasonal production risks
Leading brokerages have issued positive recommendations on the Bharat Coking Coal Limited (BCCL) initial public offering, citing the company’s dominant market position, strong operational performance, and attractive valuation metrics.
HDFC Securities highlighted the company’s robust production track record in its report. “BCCL’s coking coal production demonstrates strong performance across recent periods. During the six months ending Sept 30, 2025 and 2024, production reached 15.05 million tons and 18.39 million tons respectively. For fiscal years 2025, 2024, and 2023, output totaled 38.89 million tons, 39.11 million tons, and 33.72 million tons,” the brokerage noted.
The securities firm emphasized BCCL’s strategic advantages, stating, “The Company’s extensive resource base and strategic location in Jharia and Raniganj coalfields, where major reserves lie within a 40-kilometer radius, ensures reliable high-quality coal supply for steel plants and dependent industries.”
HDFC Securities also pointed to the company’s value-addition capabilities: “BCCL operates five coal washeries as of September 30, 2025, reducing ash content to meet steel industry requirements. Three additional washeries with 7.00 million tons annual capacity are under development to increase washed coal output.”
Canara Bank Securities recommended the issue with a note of caution on operational challenges. “However concern remains regarding seasonal fluctuations as seen in first half of this year, the reported numbers were not at par due to heavy rainfall in the Dhanbad region,” the brokerage observed. Despite this, it maintained a positive outlook, stating, “We recommend ‘SUBSCRIBE’ the issue for long term gains for investors with ‘Medium to High’ risk appetite.”
Anand Rathi Research assigned a ‘subscribe for listing gains’ rating to the issue. “Bharat Coking Coal, with a strong market share in the industry valued at ~8.64x P/E on FY25 earnings (at the upper band) is valued fairly. Considering the company’s consistent track record & superior financial metrics, the valuation is fully priced in. Hence, we recommend subscribing to the IPO for listing gains,” the brokerage said.
Aditya Birla Money also rated the issue favorably, noting the company’s market leadership and growth prospects. “BCCL is India’s largest producer of Coking Coal with estimated reserves of 7,910 MMT and a network of 34 operational mines and amongst the largest Coking Coal reserve holders in the country,” the brokerage highlighted.
“With India’s steel capacity expansion driving long-term coking coal demand, BCCL’s integrated operations, modernization initiatives and stable offtake position is favorable for the company. At the upper price band, BCCL is available at a reasonable valuation of ~8.6x FY25 P/E and 5.5x FY25 EV/EBITDA. We have a SUBSCRIBE rating to this issue for listing gains,” Aditya Birla Money stated in its note.
