Shares of Coal India Ltd jumped as much as 3.2 per cent in its biggest daily percentage gain since August 3.
The company had on Saturday posted 61.07 per cent jump in consolidated net profit at Rs 3,786.44 crore for the June quarter of 2018-19 financial year. It had reported a net profit of Rs 2,350.78 crore in the same quarter of 2017-18.
Net income rose 17 per cent to Rs 25,470.86 crore from Rs 21,774.42 crore in the year-ago period. Coal production stood at 136.85 million tonnes during the quarter, while offtake was 153.47 mt. CIL, which accounts for over 80 per cent of the domestic coal output, has set a production target of 630 mt for 2018-19.
Cash cost is well in control, say Nomura analysts. The brokerage has maintained 'buy' rating with a price target of Rs 318. Morgan Stanley analysts expect realisations to improve, helped by higher share of e-auction volume. They have rated the stock as 'equal-weight' with a price target of Rs 306.
Over 6.3 million shares changed hands as of 0504 GMT, nearly twice their 30-day average volume. About 23 of 29 brokerages have rated the stock “buy” or higher, five “hold” and one “sell” or lower; their median price target is Rs 345, according to Thomson Reuters data.