Coal India fuels up a rally
By Research Desk
about 10 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.