Coal India’s share price climbed 5.4% to reach Rs 164.90 coin intraday on BSE, bringing the total market cap above Rs 1 lakh crore. Coal India shares broke their previous record of Rs 162.95 each, hit on February 26 this year. So far this month, the state-owned company’s stock has gained nearly 12% against a 1.3% rise for S&P BSE Sensex. Analysts suggest 13 percent more rally in the stock. In terms of volume traded, 23.47 shares have been traded on ESB, while a total of 3.18 crore of Coal India shares have been traded on NSE so far in the day.
Coal India shares could rise 13%
The stock broke its 100-week average with large volumes and a flow of positive information about rising coal prices at auction, Binod Modi, head of strategy at Reliance Securities, told The Bharat Express News Online . He expects Coal India shares to climb to Rs 185 each in the coming weeks. The company is expected to report its results for the January through March quarter next week, June 16.
Coal India: What should investors do with stocks?
Demand for Coal India’s online auctions began to pick up after the drop in the previous fiscal year, when the miner had to auction at a notified price for almost six months to get volumes in an effective market. running out of demand. Bonuses and achievements for electronic auctions have improved as demand has recovered. Global thermal coal prices have increased, which bodes well for the success of electronic auctions, Likhita Chepa of CapitalVia Global Research told The Bharat Express News Online. “We believe that Coal India’s profitability will rebound strongly in FY22, thanks to improved drawdowns and realizations. Therefore, investors may consider holding this stock with a long-term perspective, ”added Chepa.
Coal India reported a sharp increase in shipments last month, registering a 37.6% year-over-year increase in volumes. The growth in withdrawals in May 2021 is explained by a 15% increase in coal-based production, against a background of a 7% increase in overall electricity demand and the replenishment of stocks in power plants, Motilal Oswal Financial Services said in a report. . Analysts at the brokerage firm have maintained a “buy” rating for the stock with a target price of Rs 180 each.
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