Shares of Coal India dropped 2% in Tuesday’s trade following a 17.5% year-on-year decline in consolidated net profit for the December 2024 quarter to ₹8,491.22 crore. Brokerages remain optimistic but have highlighted concerns such as lower realisations from sales, decreased e-auction premiums, subdued power demand, and lower-than-expected volume growth.
Coal India’s stock closed 1.08% lower on the NSE at ₹371.70 but saw an intra-day low of ₹367.75. The total market cap was ₹2,29,068.61 crore, and on the BSE, the stock ended 1.19% lower at ₹370.95.
Elara Capital maintains a positive long-term outlook on the stock, with a buy call and a reduced target price of ₹499. Motilal Oswal noted a decent improvement in Q3 for Coal India and maintained its buy rating with a target price of ₹480, making it their top pick in the metals and mining sector.
Anand Rathi Research retained a buy rating on the stock with a target price of ₹470, highlighting the company’s focus on increasing volumes and a strong dividend policy. ICICI Securities upgraded its rating from add to buy with a reduced target price of ₹455. Nuvama Institutional Equities suggested a hold rating with a revised target price of ₹419, waiting for volume growth before re-entering the stock.
Jefferies maintained a buy rating with a target price of ₹475, citing a strong economic growth outlook fueling coal volume growth. Meanwhile, Morgan Stanley rated the stock overweight with a target price of ₹525 and JP Morgan maintained a neutral stance at ₹435. Overall, the sentiment towards Coal India remains positive, with some concerns about market share and volume growth.
