Coal India Share Price: Coal India stock price rose over 5 per cent in morning trade on BSE on Monday. The stock opened at Rs 238.05 against the previous close of Rs 236.85 and rose 4.7 per cent to Rs 248.90 in trade so far. The stock traded 5.05 per cent higher at Rs 248.80 on BSE around 11:35 am.
Although, so far the tock has underperformed the benchmark Sensex in the last one year. While the Sensex has gained over 10 per cent in the last one year Coal India’s share price has gained about 7 per cent in the same period.
Coal India’s share price hit its 52-week high of Rs 263.30 on November 9, 2022 on BSE. As of the previous session close, the stock is down 10 per cent from its 52-week high level.
However, experts and brokerage firms believe the stock can move higher from the current levels as indicated by the fundamental and technical factors of the stocks.
Brokerage firm ICICI Securities maintains a buy call on the Coal India stock, pegging the target price of Rs 285, implying a 20 per cent upside potential.
The brokerage firm pointed out that Coal India’s August 2023 operating numbers were robust.
“(1) production/sales volume continued at the highest-ever level for the fifth successive month in FY24; (2) SECL’s volume revival has offset the flat volumes from MCL; (3) the traditional volume trough in Q2 is far lower in FY24 owing to increased rake availability; (4) higher volume to non-regulated sector (NRS), up 61 per cent year-on-year (YoY) in August 2023, is likely to maintain FSA prices; and (5) pithead inventory at 45.3mnte remains at a comfortable level owing to production ramp-up,” ICICI Securities said.
The brokerage firm believes Coal India is likely to gain from operating leverage benefits accruing from higher sales volume for both NRS and e-auction customers, despite a much lower e-auction premium than in FY23.
Religare Broking has picked state-run coal miner Coal India (CIL) as its pick of the month for September 2023 and has recommended a ‘buy’ on the stock with a potential upside of nearly 11 per cent.
According to the brokerage frim, Coal India has been trading in a consolidation range i.e. 230-235 for the last ten months, after a strong directional move.
‘’It attempted a breakout in June 2023 but failed and retraced to the support zone of the medium term moving average i.e. 100 EMA. Formed a higher base in the last three months and currently trading on the verge of a breakout again,” said Religare Broking.
As per the brokerage firm’s rationale, the PSU stock has gained only a per cent but with substantial rise in OI nearly 23 per cent. 92 per cent of open positions rolled to the next series (~92 per cent on last expiry). OI of 15,000 contracts as against 12,000 previously with decent delivery in cash, according to the brokerage.
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