| Photo Credit: Coal India |
Coal India shareholders woke up to warmer-than-usual sunshine on January 2nd, with the stock price opening 1% higher after the company announced an impressive 8.2% year-on-year production jump in December 2023. By 9:20 AM, the stock was already glowing at Rs 385.40, basking in the glow of optimism.
Fueling the rally was Coal India's regulatory filing late on January 1st, disclosing December's production figures of 71.9 million tonnes, marking a significant step up from the previous year. This positive momentum wasn't limited to December though; the April-December 2023 period saw overall production surge by 11% to 531.9 million tonnes compared to the same period in 2022.
The good news continued as Coal India reported a 6.1% year-on-year increase in December's offtake, reaching 66.6 million tonnes. For the April-December period, offtake climbed 8.7% to 552 million tonnes, further illustrating the strong demand for black gold.
Adding fuel to the fire, foreign brokerage firm Jefferies tossed in a 'buy' call and a generous target price increase for Coal India, bumping it up from Rs 425 to a toasty Rs 450. Their report cited Coal India's "improved volume growth trajectory" and India's robust economic outlook as key drivers for the bullish stance.
Looking back at Q2FY2024, Coal India delivered a solid performance, with consolidated net profit rising 13% year-on-year to Rs 6,814 crore for the quarter. Analysts attributed this success to a potent cocktail of increased power demand, boosted production, and a relatively light monsoon season.
With production exceeding expectations, solid offtake, and analyst recommendations adding spice to the mix, Coal India's stock appears to be on a hot streak. As the Indian economy continues to hum, the demand for coal is likely to remain robust, potentially giving Coal India's fortunes even more shine.
Disclaimer: UnPopularDailyNews is dedicated to providing informative and insightful news, not financial advice. Please remember that investing involves risk, and past performance is not indicative of future results.
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