Coal India was up 1.84% to Rs 279.70 at 12:50 IST on BSE on reports a foreign brokerage house has upgraded its ratings to outperform from neutral on the stock.
Meanwhile, the S&P BSE Sensex was up 53.37 points or 0.16% at 33,671.96.
On the BSE, 1.75 lakh shares were traded on the counter so far as against the average daily volumes of 4.66 lakh shares in the past one quarter. The stock had hit a high of Rs 282 and a low of Rs 275.70 so far during the day. The stock had hit a 52-week high of Rs 332.10 on 27 February 2017 and a record low of Rs 234 on 11 August 2017.
The foreign brokerage house also reportedly hiked target price on Coal India stock to Rs 310 from earlier Rs 280. It expects domestic coal market to remain tight in near to medium term, while lower supply and strong global prices to help e-auction prices from third quarter. It feels that the supply tightness makes the risk-reward favourable. Wage hikes and grade slippage has factored in the first half of the current financial year (FY 2018), while low coal inventory is going to keep volumes elevated in the next financial year, it added.
The brokerage house expects Coal India's earnings per share (EPS) to grow after five years and expecting 100% dividend payout in FY 2018.
On a consolidated basis, Coal India's net profit fell 39.8% to Rs 368.88 crore on 11.9% growth in net sales to Rs 17478.52 crore in Q2 September 2017 over Q2 September 2016.
Coal India is an organized state-owned coal mining corporate.
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