Meanwhile, the S&P BSE Sensex was down 0.54 point at 29,318.56.
On the BSE, 2.21 lakh shares were traded on the counter so far as against the average daily volumes of 4.61 lakh shares in the past one quarter. The stock had hit a high of Rs 283.35 and a low of Rs 276.05 so far during the day.
The stock had hit a 52-week high of Rs 349.85 on 17 August 2016 and a 52-week low of Rs 272.65 on 4 May 2016. It had underperformed the market over the past one month till 18 April 2017, sliding 3.68% compared with the Sensex's 1.11% fall. The scrip had also underperformed the market over the past one quarter, declining 9.57% as against the Sensex's 7.56% rise.
The large-cap company has equity capital of Rs 6207.41 crore. Face value per share is Rs 10.
The potential upside in Coal India stock price is in addition to around 6% dividend yield and is very attractive compared to its cost of equity, the broker reportedly said.
Coal India deserves a premium over other metal and mining stocks due to its dominant position in the Indian markets and its current coal pricing being very competitive, which has virtually no downside risk, the brokerage added.
Meanwhile, Coal India after market hours yesterday, 18 April 2017, issued clarification to the stock exchanges with respect to news appeared in media on 17 April 2017 titled "177 mines of Coal India downgraded on quality concerns. The company said that coal is a heterogeneous mineral, susceptible to qualitative variation particularly in Indian context because of its origin and formation. As per earlier practice, annual declaration of grade proposed by coal companies on the basis of own sample collection and analysis at government accredited laboratories, which was being approved by Coal Controller in due course.
As per statutory provisions, subject of maintenance of grades requires monitoring which is vested with Coal Controller Organization (CCO). Annual declaration of grades is a routine exercise, being carried out by coal companies as per directives and methodology prescribed by CCO, Coal India said. During FY16-17, 52 mines/seams were regarded. Again, during reassessment another 22 mines were regarded, the company said.
During FY17-18, as per directives of government, Coal Controller announced new methodology for declaration of grade. Under revised methodology, sampling and analysis of different seams/loading points was carried out through academic institutions and based on their results, CCO finalized the grades, Coal India said.
Independent certification of coal grade through CC0 and analysis through CIMFR will help Coal India to achieve consumers' confidence and satisfaction besides less slippages in future, the company said. Re-calibration of entire grading methodology is also going to help government in its mission to make cheap power available to common person, it added.
Coal India's consolidated net profit fell 20.3% to Rs 2884.47 crore on 3.9% rise in net sales to Rs 19704.45 crore in Q3 December 2016 over Q3 December 2015.
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