Coal India fuels up a rally
By
Research Desk
about 9 years ago
There is good news for Coal India counter this morning. The Coal Ministry allowed the company to revert to its old system of removing limit on the e-auction volumes, effective 1st April 2015. This is a great move for the company which gets some 35-65% more than the notified price on auctioned coal.
The ministry had put a 7% cap on auction sale in Sept’14 and it contributed 40% to EBITDA. And it had ended FY15 by selling some 45 mt through-auction. Removal of this cap could easily add 7-8% more to the company’s bottomline and in current fiscal, e-auctions could be over 10% of total volume sale.
Little wonder then that the stock price is today strongly in the green, up almost 3.5% at Rs.372. Its 52-week high stands at Rs.423.85.