Shares of witnessed volatile trading on Friday, retreating after touching a fresh 52-week high earlier in the session.
The stock opened on a positive note at ₹473 and climbed to a one-year high of ₹476, compared with the previous close of ₹470.10. However, profit booking erased early gains, dragging the stock down more than 1 per cent to ₹465.05 as of 10.44 am.
Coal India shares volatile in today’s trade
Global brokerage HSBC maintained a hold rating on the stock but raised its target price to ₹420, citing improved realisations in the near term. The brokerage said higher natural gas prices and firm regional coal prices have led it to raise estimates for Coal India’s e-auction premiums and volumes. It increased its FY27 earnings per share estimates by about 13 per cent to reflect stronger near-term pricing trends.
However, HSBC kept its FY28 earnings estimates unchanged, highlighting structural challenges facing the sector. The brokerage said the fundamental issue of domestic coal oversupply and subdued thermal power demand is likely to weigh on e-auction premiums over the medium term.
HSBC added that the recent outperformance in the stock is largely driven by West Asia geopolitical situation, which has lifted global energy prices. It cautioned that the rally may lose momentum once gas supplies normalise and energy markets stabilise.
Recently, and raised its target price to ₹485 from ₹450, citing improving earnings visibility and favourable demand conditions, while JM Financial maintained a reduce rating on the stock with a target price of ₹420.