Coal India’s share price has soared by more than 90% in the past year, reflecting strong demand and a positive production outlook. Analysts remain optimistic, projecting an upside potential of over 15% for the company’s shares. Leading brokerage firms such as SBI Securities and Anand Rathi Research have set target prices indicating significant gains from current levels. Several factors are contributing to Coal India’s bullish trajectory. The company plans to reduce expenses by closing unprofitable mines and gradually trimming its workforce by about 5% annually over the next five to ten years. This strategy is expected to lead to a substantial decline in employee costs. Additionally, Coal India is poised to report a 23.8% increase in net profit in Q4FY24, according to estimates by Motilal Oswal Financial Services. Analysts at Anand Rathi foresee a 13% compound annual growth rate (CAGR) in Ebitda over FY24-26, driven by the company’s focus on volume expansion and cost savings. Furthermore, Coal India maintains a prudent dividend policy, with a 50% payout anticipated in the near future.
Coal India Share Price Surges Amid Strong Demand and Improved Earnings Outlook
