New Delhi: Motilal Oswal is bullish on Coal India stock. The domestic brokerage form has given a Buy rating on Coal India shares, predicting the counter to rise around 29 per cent from the current levels. Coal India share price has dropped around 10 per cent in the last 1 month and over 24 per cent in the past six months.
Motilal Oswal has given a target price of Rs 480 on Coal India at the current market price (CMP) of Rs 372, which indicates the stock can increase around 29 per cent. While advising the interested stock market investors to buy the stock, the brokerage that we reiterate our ‘buy’ rating with a target price of Rs 480 per share.
Coal India shares were trading marginally down at Rs 370.15 at 1:30 pm on January 1:30 pm. Despite the stock market on the down side, the brokerage has initiated a positive rating on the stock, saying it sees a potential upside in the shares of Coal India.
Coal India production
Coal India has reported production of 202 metric tonnes (MT) in Q3FY25, up 2 per cent on year-on-year (YoY) basis. At the same time, till the 9th month of FY 25 (9MFY25) the total production has been 543 metric tons (MT). The PSU supplied 85 per cent of the total dispatch to the thermal power industry.
Motilal Oswal report stated that regular disruptions in the Parliament and Assembly elections and irregular monsoon in coal producing states like Odisha and Jharkhand were the main reasons behind the slowdown in Coal India’s volume growth.
In the last 9 months, Coal India share of coal dispatch in the power sector declined from 90 per cent in June 2024 to 79 per cent in December 2024 (vs. 90% in December 2023). Meanwhile, the share of thermal power in total electricity generation (ex RE) in India remained at its previous level of 85 per cent. This highlights the contribution of increasing demand for coal from non-power companies.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO and Mutual Funds.)
Motilal Oswal initiated a Buy rating on Coal India, saying the stock has the potential to rise to the levels of Rs 480 per equity share. Coal India shares have given negative returns in the last six months. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
