Morgan Stanley has reiterated its ‘Overweight’ rating on Coal India, maintaining its target price of ₹525, but raising concerns over a 5% YoY moderation in offtake—which it considers a key negative for the stock.
According to the brokerage, the slow pick-up in power demand has weighed on production volumes, with additional pressure coming from inventory adjustments impacting offtake levels. Unless there is a significant improvement in economic activity, the moderation in offtake could hurt earnings estimates for Q4FY25 and FY26.
Despite the near-term challenges, Morgan Stanley remains positive on Coal India’s long-term prospects, citing pricing stability and steady demand for coal as factors supporting the company’s outlook.
