UBS has initiated coverage on Coal India with a "buy" rating and a target price of Rs 470.
It said the Government reforms to cut delays in expansion projects coincide with Coal India's capex increase.
The company is insulated from commodities slump due to a supply starved domestic power sector and business model, it added.
Coal India matters to the government politically and financially as a key part of its divestment programme, UBS analyst William Vanderpump says in a report.
Also, a Finance Ministry official said a few days ago that further share sale in Coal India is possible. The stock is down 1.4 per cent on profit-taking after rising for four straight sessions on report that government has lifted e-auction cap.
At 10.45 am, the stock was down 1.43 per cent or Rs 5.60 at Rs 386.70 on the BSE.
Of 41 analysts covering the company, 22 have "buy" or a higher rating, 13 have "hold" and 6 have "sell," according to Thomson Reuters data.