Dividend a sentiment-positive for Coal India but concerns remain

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

Earnings will grow strongly in FY19 but concerns remain over profit growth thereafter

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 ...