Coal India gains after coal regulator bill gets approval

Meanwhile, the S&P BSE Sensex was up 309.78 points, or 1.64%, to 19,185.73.

On BSE, 59,000 shares were traded in the counter as against an average daily volume of 2.42 lakh shares in the past one quarter.

The stock hit a high of Rs 299.35 and a low of Rs 289 so far during the day. The stock had hit a record low of Rs 285.15 on Thursday, 27 June 2013. The stock had hit a 52-week high of Rs 386 on 17 September 2012.

The stock had underperformed the market over the past one month till 27 June 2013, falling 8.47% compared with the Sensex's 5.77% fall. The scrip had also underperformed the market in past one quarter, falling 4.75% as against Sensex's 0.92% rise.

The large-cap company has an equity capital of Rs 6316.36 crore. Face value per share is Rs 10.

The setting up of coal regulator will need parliament's approval to become law. Once the coal regulator is place, Coal India will have to adopt a formula for price fixing, based on the quality of the fuel outlined by the regulator. The regulator may also oversee coal supplies from Coal India to consumers such as power producers. It could also independently monitor the progress made by state-run and private companies in extracting coal under government allocated mining licenses.

Coal India's consolidated net profit rose 34.9% to Rs 5413.91 crore on 2.5% increase in net sales to Rs 19904.57 crore in Q4 March 2013 over Q4 March 2011.

Coal India is the largest coal producer in the world.

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