Coal India Shows Strong Production Surge, Stocks Surge Nearly 2%

Shares of Coal India marked a 1 percent gain on January 2, following the company’s revelation of an 8.2 percent year-on-year production spike to 71.9 million tonnes in December.

In an official disclosure after January 1’s trading hours, Coal India reported an 8.2 percent surge in coal production for December 2023, reaching 71.9 million tonnes. Notably, production for April-December 2023 witnessed an 11 percent growth, totaling 531.9 million tonnes compared to the same period the previous year (April-December 2022). Concurrently, offtake figures rose by 6.1 percent year-on-year to 66.6 million tonnes in December 2023, with a cumulative increase of 8.7 percent in the nine months ending December 2023, reaching 552 million tonnes.

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Foreign brokerage firm Jefferies has advocated a ‘buy’ stance on Coal India’s stocks, elevating the target price from Rs 425 to Rs 450. According to their report, “Coal India’s volume growth trajectory has strengthened and is expected to persist amidst India’s robust economic growth prospects and escalating power consumption.”

As of 10:32 am, the shares exhibited a 1.49% surge, trading at ₹387.50.