Coal India share price fell over 1 per cent to Rs 147.20 apiece on BSE on Monday, 28 June 2021. Coal India hit day’s high of Rs 149.50 and low of Rs 147 apiece, according to the stock exchanges. Earlier this month analysts had suggested a 13 per cent more rally in the stock. In volume traded terms, 5.35 lakh shares have exchanged on BSE, while a total of 82.17 lakh stocks of Coal India have traded on NSE on Monday.
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Coal India shares may rally 13% more
The stock has given a breakout from its 100-week average with strong volumes and on back of positive news flow of higher auction coal prices, Binod Modi, Head Strategy at Reliance Securities, told Financial Express Online. He expects Coal India stock to rally up to Rs 185 apiece over the next few weeks. The company announced its January-March quarter results 16 June 2021
Coal India: What should investors do with stock?
Demand for Coal India’s e-auction sales has begun to recover after plummeting last fiscal, when the miner was required to auction at a notified price for nearly six months to obtain volumes in an effective short-of-demand market. Premiums and realisations for e-auctions have improved as demand has recovered. Global thermal coal prices have been on the rise, which bodes well for e-auction success, Likhita Chepa, CapitalVia Global Research, told Financial Express Online. “We estimate Coal India’s profitability to rebound strongly in FY22, on the back of improved offtake and realisations. Therefore, investors can consider holding this stock with a long-term perspective,” Chepa added.
Last month, Coal India reported strong offtake in dispatches, registering a 37.6 per cent on-year increase in volumes. Offtake growth in May 2021 came on the back of a 15 per cent rise in coal-based generation, amid a 7 per cent rise in overall power demand, and re-stocking of inventory at Power plants, Motilal Oswal Financial Services said in a report. Analysts at the brokerage firm maintained a ‘buy’ rating to the stock with a target price of Rs 180 apiece.
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