Now Reading: Coal India shares fall 4% on weak Q1, brokerages flag costs
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Coal India shares fall 4% on weak Q1, brokerages flag costs
Coal India shares fell 4.06 per cent to close at Rs 410.15 on Tuesday, a day after the state-run miner reported a marginal 0.7 per cent rise in consolidated net profit to…
The Story in Brief
Coal India shares fell 4.06 per cent to close at Rs 410.15 on Tuesday, a day after the state-run miner reported a marginal 0.7 per cent rise in consolidated net profit to Rs 8,849.81 crore for the June quarter. Total income and expenditure grew 8 per cent and 12 per cent respectively, weighing on operating performance.
Brokerages reacted with caution. Jefferies kept a buy rating with a Rs 500 target, citing a possible power demand recovery. Citi and JPMorgan maintained neutral ratings, with Citi cutting its target to Rs 430 and JPMorgan to Rs 430. Morgan Stanley retained equal-weight at Rs 420, noting weaker than expected realisations and higher opex. Analysts flagged risks from rising inventory and a potential wage revision in FY27.
The Indian Opinion
The drop in Coal India shares is not a panic sell-off but a sober reassessment. Yes, earnings disappointed, but three of four brokerages still see the stock as worth holding. The real test lies ahead: will a weak monsoon and rising power demand lift volumes enough to offset cost pressures from wage revision? Watch the e-auction premium and monthly offtake numbers for the answer.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
