Shares of Coal India declined 2 per cent on Tuesday’s trade after the State-run coal miner posted a 17.5 per cent year-on-year decline in its consolidated net profit for the December 2024 quarter to ₹8,491.22 crore. Although optimistic, the brokerages have highlighted key concerns such as lower realisations from sale, a decline in e-auction premiums, subdued power demand, and a lower-than-expected volume uptick.
Coal India stock closed 1.08 per cent lower on the NSE at ₹371.70, after hitting an intra-day low of ₹367.75. The total market cap stood at ₹2,29,068.61 crore. On the BSE, the stock declined 1.19 per cent to end at ₹370.95.
Elara Capital remains positive on the stock in the long term. Maintaining the buy call, the brokerage has reduced target price to ₹499 from ₹572, factoring in lower-than-expected growth in coal volumes and moderation in e-auction premium.
Motilal Oswal buy call
However, Motilal Oswal observed that Coal India witnessed a decent improvement in Q3, following a drag in Q2 FY25.
“The e-auction volumes also remained elevated with some increase in e-auction premiums, which supported profitability,” the domestic brokerage said in its report. It has maintained estimates for FY26/27.
Reiterating buy rating at a target price of ₹480, Motilal Oswal added that Coal India remains its top pick in the metals and mining sector.
Anand Rathi target price
Anand Rathi Research retained buy call on the stock at a target price of ₹470, positive about the company’s focus on ramping up of volumes, investor-friendly dividend policy, and robust power demand.
ICICI Securities analysts, taking cognizance of the recent price correction and improvement in e-auction parameters, have upgraded the stock from add to buy call, however, at a reduced target price of ₹455 from ₹525 earlier.
Nuvama Institutional Equities stated that Coal India is losing market share amid the rise in coal production from captive mines. Adding to it, sustenance of high imports has affected the sales volume. Meanwhile, Motilal said the company’s focus on increasing coal-washer capacity will improve its market share in domestic coking/non-coking coal.
Nuvama hold ratings
Nuvama has retained a hold rating on the stock at a revised target price of ₹419. “We do not see much downside, but prefer to wait for volume growth to re-enter the stock,” it added.
Global brokerage Jefferies has maintained a buy on the stock at a target price of ₹475, stating that the country’s strong economic growth outlook should fuel healthy coal volume growth.
Morgan Stanley has given an overweight rating at a target price of ₹525, while JP Morgan maintained a neutral stance at ₹435.