Coal India: Share price at 8 year high, brokerage firm increased target price, you too can become rich
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Coal India Share Price: Coal India has performed brilliantly in this quarter. Due to high sales and improvement in joint ventures, the company’s profit has increased by 12.5 percent on annual basis to Rs 6800 crore. The big thing is that the company had incurred a loss of about Rs 140 crore in the normal quarter last year.
According to the results released by Coal India, this year the company has earned a profit of about Rs 90 crore. The company’s operational revenue has increased by about 4 percent to Rs 3277 crore, EBITDA has increased by about 12 percent to Rs 10121 crore and EBITDA margin has been 29.1 percent. The impact of the company’s excellent performance can be directly seen on the company’s shares.
Due to the results of September quarter, there was a rise in the shares of Coal India in the stock market on Monday. The company’s shares jumped four percent to an eight-year high. The stock was at Rs 350 in intra-day trade, its highest price since 2016. By the time the market closed, it closed at Rs 349.25 with a rise of 5.26%.
Considering the action in Coal India shares, the brokerage firm has increased its target price. Jefferies has changed the company’s rating from Hold to Buy. Along with this, the target price has been increased by 19 percent to Rs 385. Investors are now showing special interest in the company.
At the same time, brokerage firm Motilal Oswal Financial Services has also placed its Coal India in the buy category. Also, the target price was increased by 18 percent to ₹380 per share. Motilal Oswal said that Coal India remains our top choice in the mining sector.
Meanwhile, the government said a total of 39 blocks will be put up for sale in the eighth round of commercial auction of coal mines starting on Wednesday. A total of 91 coal mines have been put up for sale in seven phases after the launch of the first tranche of commercial auction of coal mines by Prime Minister Narendra Modi in June, 2020.
The Coal Ministry said in the statement that a total of 35 coal mines will be offered in the upcoming round, including 11 under the Coal Mines (Special Provisions) Act, 2015 and 24 under the MMDR Act 1957. Additionally, four coal mines are being offered in the second attempt in the seventh round of commercial coal auction. It said that the commencement of the eighth round of commercial auction of coal mines is an important step towards promoting private sector participation in the mining industry and increasing coal production.
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