An analyst expects Coal India to fall to 300 even as most of the street remains bullish [Video]

Brokerage firm Equirus is one of the few firms to have a “sell” recommendation on Coal India and it expects the stock to fall to as low as ₹300 by March 2025. Equirus’ price target implies a potential downside of 34% on Coal India’s shares.

The Chairman also mentioned that the company will fall short of its financial year 2024 production target of 780 MT by 10 MT.

The street is nervous due to the drop in premiums as the bulk of the profitability for Coal India comes from e-auction.

What needs to be watched out for going ahead is how much of the e-auction premium decline can be offset by an increase in e-auction volumes.

Equirus noted that with e-auction realisations spiralling down from 117% to 36% to 48% in January-February 2024, Coal India’s earnings are set to decline in calendar year 2024 sharply.

The brokerage wrote that despite …