Business Standard

Dividend a sentiment-positive for Coal India but concerns remain

Weak volume growth likely to put pressure on more profitable e-auction segment



Ujjval Jauhari
Coal India has rebounded more than 5 per cent from its lows, seen at start of the month. Though this has been helped by a strong interim dividend of Rs 7.25 a share, concerns on fundamentals remain. 

While softening international coal prices could put pressure on more profitable e-auction premiums, tepid volume growth could weigh on e-auction volumes. 

Coal India had reported sales volume growth of 6.5 per cent during the April to November period. Despite severe shortage of coal, analysts expect growth in the August-December period to be a mere 1 per cent, led by improved demand from the

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Dec 27 2018 | 11:08 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to