Coal India gains ~3% after brokerage upgrade

The research house said that the resolution of short-term disruptions and the recent environment clearance could lift volume growth.

Feb 26, 2019 08:02 IST India Infoline News Service

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Shares of Coal India gained 3% on Tuesday in the afternoon session after foreign brokerage firm Jefferies gave the company a "buy" rating with a price target at Rs309, implying a 44% potential upside from November 25 levels.

The research house said that the resolution of short-term disruptions as well as the recent environment clearance could lift volume growth. The brokerage firm believes that with power plant coal stocks normalizing, the e-auction mix should improve.

Operating leverage gains should keep costs stable, the brokerage firm added.

Coal India Ltd is currently trading at Rs221.60 up by Rs7.15 or 3.33% from its previous closing of Rs214.45 on the BSE. The scrip opened at Rs213.50 and has touched a high and low of Rs221.90 and Rs213.25 respectively.

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