Shares of Coal India Limited gained 2% to hit a fresh 52-week high of ₹362.50 in trade Wednesday, December 6. The stock price has moved up by 60% in the last three months amid rising power demand leading to volume growth, higher e-auction prices and cost peaking out.
Estimates of analysts at domestic brokerage firm Nuvama Institutional Equities remain unchanged as they have factored in lower e-auction prices and do not foresee any downside risk to its estimates. Nuvama has maintained a ‘Buy’ call on the counter, suggesting a target price of ₹404 in a year.
For November 2023, Coal India’s volume remained high at 63.1 million tonnes but its growth rate normalised, up 6.2% year-on-year, due to a high base and festive season. Moreover, on an month-on-month basis, it was up 5.8% on a per day basis.
E-auction price cools off
Nuvama said an average e-auction premium spiralled down from 118% in October …