- Coal India’s shares are near their 52-week high of ₹203.85 (October 6, 2021) as they have surged 32% in 4 days.
- The Russia-Ukraine crisis is impacting importers, but Coal India is a beneficiary as we will have to rely on domestic production to a greater extent.
- Coal India recorded its highest-ever single-day dry fuel production of 5.67 lakh tonne on Tuesday, taking its total output in FY22 so far, to 110.5 MT, as per a PTI report.
Coal India’s shares are near their 52-week high of ₹203.85 (October 6, 2021) as they have surged 32% in 4 days. On Thursday’s early trade, the stock zoomed 7% to ₹198 on the BSE, on the back of heavy volumes.
33 million equity shares changed hands on the NSE and the BSE so far in trades.
The S&P BSE Sensex was up 0.1 percent at 55,515 points, while the stock of the state-owned company traded 3.17% higher than its previous day close of ₹184.80.
The company announced that its subsidiary Northern Coalfields (NCL) is about to surpass the targeted coal production of 119 million tonnes for the current financial year. Further, it affirmed that its Capex aim of ₹1,640 crores remains intact.
Coal India recorded its highest-ever single-day dry fuel production of 5.67 lakh tonne on Tuesday. This takes its total output for FY22 so far, to 110.5 MT, as per a PTI report.
European coal surged to historic highs as the Russia-Ukraine crisis tightened supplies globally. The benchmark thermal coal in Asia which is the largest market for coal soared 46% to a record. This was amidst concerns about disruption to supplies from Russia, as per a Bloomberg report.
According to ICE Futures Europe, futures for high-quality thermal coal loaded on ships at Newcastle port in Australia jumped to $446 a tonne on Wednesday, adding $140.55 in a single day and rising to the highest as per data going back till 2008.
Coal India Ltd. delivered a strong performance in the December quarter (Q3FY22). This was in spite of facing hurdles such as heavy rainfall and the pandemic that affected physical performance.
Motilal Oswal Financial Services (MOSL)
MOSL expects profitability to recover further in the March quarter (Q4FY22) led by strong e-auction premiums that breached the 100% mark in Jan-Feb, after twelve quarters.
The company is a key beneficiary, as importers are getting impacted due to the ongoing supply shortage of coal in the global market, as per the brokerage’s Q3 result update.
The brokerage has given a ‘buy’ rating on the stock with a target price of ₹217 per share.
The brokerage has suggested a buy on Coal India with a target of ₹203 per share and a stop loss of ₹185 per share.
Coal India Financials
Coal India is a large-cap company with a market cap of 1,13,918 crores. It reported a consolidated total income of ₹29,086.35 crores in the December quarter.
This was up 19.53% as compared to the same quarter last year. Its promoters hold 66.13% of its shares.