Coal India in the news

Coal India is in the news today. The stock which had closed yesterday at Rs.306.45, opened a tad bit higher, going up some 1.5% up to Rs.311.90. Its 52-week high stands at Rs.349.85 and low is at Rs.272.05.

Two news on the company causing this mild flutter. Firstly its production and offtake figures for November which came in much better – coal production for Nov was at 53.85 mt v/s 50 mt (MoM) whil offtake rose from 48.16 mt to 49.8 mt (MoM).

The second news broken by Reuters is that some senior Indian government officials tasked by the PM with reviewing energy security are recommending the break up of the country's coal monopoly, Coal India within a year. Their recommendation is that the company should be broken up into seven companies, which they say would make it more competitive and efficient.

One does not really know if this go through as the union of Coal India, representing some 3.5 lakh employees had earlier also, in 2014, thwarted this attempt.