Coal India shares came under pressure on February 25 after JPMorgan revised its target price for the stock to ₹395 while maintaining a ‘Neutral’ rating. The global brokerage firm highlighted several headwinds impacting the company’s outlook, including a decline in international thermal coal prices due to oversupply, weak domestic power demand since August 2024, and muted production volume growth leading to higher-than-average inventory levels.
Additionally, JPMorgan noted that a sharp rise in coal dispatch growth from captive miners has resulted in a market share loss for Coal India. However, the brokerage suggested that the stock could turn attractive if the share price drops below ₹340 or if India’s power demand growth significantly improves in the coming months.
Coal India’s market capitalization currently stands at ₹2.22 trillion, with a price-to-earnings ratio of 5.64 and a dividend yield of 6.98%. Despite its strong fundamentals, the near-term outlook remains cautious amid global and domestic demand uncertainties.
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