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.