Morgan Stanley has initiated coverage on Coal India with an Overweight (OW) rating and a target price of ₹525, which implies a 27% upside from the current market price of Rs 411 per share. The brokerage cites a robust power demand outlook as a key driver for sustained volume and earnings growth over the next few years. Coal India’s healthy operating cash flows provide significant flexibility, ensuring medium-term dividends and capex plans remain intact.
Attractive valuations further support the bullish outlook, with the stock trading at 2.1x FY26 Price-to-Book (P/B) and 6.8x FY26 Price-to-Earnings (P/E) ratios. Morgan Stanley views these metrics as undervalued, positioning Coal India as a strong investment candidate amid ongoing sectoral tailwinds.
