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Shares of Coal India hit over 5-week low on weak Q2 results. The stock fell as much as 3.6 per cent to Rs 274.35, lowest since October 6.
Coal India Ltd had on Saturday posted a 40 per cent drop in net profit at Rs. 369 crore for the quarter ended September 30 compared with Rs. 612 crore in the same period last year.
Revenue from operations was up by 4 per cent at Rs. 18,148 crore during the quarter under review compared with Rs. 17,418 crore in the same period last year.
The stock posted its biggest intraday percentage drop since August 3.
"The company's Q2 results were disappointing. We expect restocking to support strong offtake growth, but recent wage hike would continue to weigh on margins,'' according to Jefferies.
The brokerage added that the coal miner's earnings outlook remains unexciting. It has trimmed FY18-19 EPS by 2.1- 2.2 per cent.
Up to Friday's close, the stock had declined 5.2 per cent this year. Jefferies has retained “hold” rating but raised the price target to Rs 253 from Rs 249.
(With inputs from Reuters)
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