Coal India gains as Coal Secretary urges use of domestic coal

Coal India rose 1.89% at Rs 313 at 13:45 IST on BSE on expectations of pick up in coal demand after coal secretary Anil Swarup appealed to state-owned power generation firms to immediately stop imports of the fuel and instead buy coal from Coal India

Meanwhile, the S&P BSE Sensex was up 88.93 points or 0.34 at 26,614.39.

On BSE, so far 1.72 lakh shares were traded in the counter as against average daily volume of 5.07 lakh shares in the past one quarter. The stock hit a high of Rs 314.35 and low of Rs 308.10 so far during the trading session. The stock had hit record high of Rs 447.25 on 5 August 2015. The stock had hit 52-week low of Rs 272.05 on 12 April 2016. The stock had outperformed the market over the past one month till 16 June 2016, surging 8.61% compared with the Sensex's 3.4% rise. The scrip had underperformed the market in past one quarter, gaining 3.92% as against the Sensex's 7.47% rise.

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

Swarup said during the inauguration of a two-day conference on power sector in Goa yesterday, 16 June 2016, that from a shortage situation sometime back, there are not many takers now for the 550 MT coal stock. He further said that Coal India has set up processes for auction of coal to public and private entities and a dispute resolution mechanism has also been set up by the government wherein disputes between states can also be resolved. State-run Coal India is India's biggest coal miner. The Coal India stock price had lost 0.75% to settle at Rs 307.20 yesterday, 16 June 2016, when the Sensex fell 200.88 points or 0.75% to settle at 26,525.46.

Swarup also said that the dues to be paid to Coal India have gone up significantly which might result into pushing the company into red.

Coal India's consolidated net profit rose 0.2% to Rs 4247.93 crore on 0.1% fall in net sales to Rs 20759.45 crore.

The Government of India holds 79.65% stake in Coal India (as per the shareholding pattern as on 31 March 2016).

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