Improving prospects indicate Coal India stock may have bottomed out
Rising sales volumes and uptick in realisations during second half should lift the coal miners performance
Overall, analysts are positive on the stock considering cheap valuations
Coal India’s (CIL’s) September quarter (Q2) performance was weak, but in line with expectations. While the demand environment remained weak during Q2, soft realisations and e-auction premiums were expected to dampen operating performance. Rising volumes on a low base, however, helped revenues and is now improving prospects for the coal miner. Sales volumes at 134 million tonnes (mt) were up 10 per cent year-on-year (YoY). The 11 per cent rebound vis-à-vis the lockdown-hit June quarter is being attributed to better off-take by power plants, with other ...