Morgan Stanley has maintained its ‘overweight’ rating on Coal India stock with a target price of ₹525 per share, highlighting a positive outlook following the company’s introduction of a “Singrauli Punarasthapan Charge” of ₹300 per tonne across all mines of Northern Coalfields, effective from May 1, 2025. According to Coal India, this levy is expected to generate additional revenue of ₹38.8 billion.
Morgan Stanley sees this as a positive development, as the charge represents 2.5% of FY26 revenue and implies an 8% upside risk to FY26 earnings estimates. The brokerage noted that the key factor to watch would be whether Coal India can implement price hikes over the period. The company is currently forecasting 2% growth in FSA realisations, which will be crucial for maintaining its earnings momentum.
Yesterday’s stock price performance:
On February 27, Coal India’s share price closed at ₹362.90, up by ₹1.75 or 0.48%. The stock managed to end in positive territory, reflecting investor optimism following the announcement of the new levy and its expected impact on revenue growth.
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