Coal India surges as JP Morgan raises price target

Coal India posted better than estimated financial results for the April to June 2022 quarter, with its profit shooting up 2.7 times. The company’s consolidated net profit shot up 178 percent on a year-on-year basis to Rs 8,834 crore for the first quarter of 2022-23 on higher sales, beating CNBC-TV18 poll projection of Rs 6,301 crore.

After Coal India's April-June quarter results, CLSA had also raised its target price to Rs 250 from Rs 205 per share earlier and maintained a buy rating.

Jefferies, on the other hand, had given Coal India shares a hold rating with a target price of Rs 175 per share.

CIL supplies nearly 80 percent of India's coal requirements, an industry tightly regulated by the government, given its strategic importance to meet energy requirements. In fact, CIL production increased by 44.6 million tonnes (MTs) in just five months and four days of the ongoing fiscal, as of September 4 eclipsing the previous best of 44.5 MTs registered in FY2016, which was for the entire year.