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Dividend a sentiment-positive for Coal India but concerns remain

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

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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

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

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