Coal India gains on foreign brokerage upgrade

Coal India rose 2.35% to Rs 337.25 at 13:06 IST on BSE on reports that a foreign brokerage has upgraded the stock to outperform from neutral citing attractive valuations on the back of power distributors' restructuring.

Meanwhile, the S&P BSE Sensex was up 30.80 points or 0.11% at 26,816.35.

On BSE, so far 2.87 lakh shares were traded in the counter as against average daily volume of 4.42 lakh shares in the past one quarter.

The stock hit a high of Rs 339.45 and a low of Rs 329.35 so far during the day. The stock had hit a record high of Rs 447.25 on 5 August 2015. The stock had hit a 52-week low of Rs 300.75 on 29 September 2015.

The stock had underperformed the market over the past one month till 5 October 2015, sliding 4.97% compared with the Sensex's 6.28% rise. The scrip had also underperformed the market in past one quarter, declining 21.01% as against Sensex's 4.65% fall.

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

The foreign brokerage reportedly said that the state electricity boards (SEBs) problem resolution may remove a big overhang, which would make the valuations of Coal India attractive. Meanwhile, media reports suggested that the Union Cabinet is likely to consider this week a proposal to recast Rs 4.3 lakh crore loans of nine state power distribution companies with a view to bring down their liabilities.

Coal India's consolidated net profit fell 6.7% to Rs 3764.35 crore on 6.5% growth in net sales to Rs 18955.75 crore in Q1 June 2015 over Q1 June 2014.

Coal India is an organized state-owned coal mining corporate.

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