UBS initiates Coal India with ‘buy’ rating

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.

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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.

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