UBS initiates coverage on Coal India shares with a “buy” rating and a target price of Rs 470.
Says government reforms to cut delays in expansion projects coincide with Coal India’s capex increase.
Adds the company is insulated from commodities slump due to a supply starved domestic power sector and business model.
Says Coal India matters to the government politically and financially as a key part of its divestment programme, UBS analyst William Vanderpump says in a report.
Further share sale in Coal India possible – Finmin official.
Stock is down 1.4 pct on profit-taking after rising for four straight sessions on report that government has lifted e-auction cap.
Of 41 analysts covering the company, 22 have “buy” or a higher rating, 13 have “hold” and 6 have “sell,” according to Thomson Reuters data.