Coal India peaks in 52 weeks and regains market capitalization of Rs 1,000 billion
Coal India shares hit a 52-week high of Rs 164.45 as they rose 5% on BSE in intra-day trading on Friday amid expectations of improving profits at the end of the day. ‘to come up. The action of the state-owned company broke its previous record of Rs 162.95, hit on February 26, 2021.
Over the past two weeks, the stock has outperformed the market, gaining 12% against a 2.2% rise for the S&P BSE Sensex. A strong recovery in share prices helped Coal India regain market capitalization of Rs 1,000 billion. As of 9.46am, the stock was up 4% to Rs 163, with a market cap of Rs 1.01 trillion, according to BSE data.
Coal India reported a strong intake of shipments, with volumes of 55.1 million tonnes, registering a 37.6% year-over-year increase in May 2021. For the first two months of fiscal 22, the intake coal remains 38% higher year-on-year. at 109.1 meters. The growth in withdrawals in May 2021 is explained by a 15% increase in coal-based production (according to initial data from POSOCO) in a context of a 7% increase in global electricity demand and replenishment of stocks in power plants (up 5mt MoM).
“With demand picking up, premiums and electronic auction achievements have shown signs of improvement. We expect this to eventually seep in (given some lag between allocation and shipments) and improve as inventory levels in the coal mines decline. Global thermal coal prices have trended upward, which is encouraging for electronic auction achievements, ”Motilal Oswal Securities analysts said in a stock update.
With the improvement in drawdowns and realizations, we see strong operational leverage kicking in. Despite other negative shocks, we expect Coal India’s profitability to recover strongly in FY22 ( +29 percent year-on-year). The recovery in demand and funds from the Atmanirbhar program should help alleviate concerns about stretched debts, the brokerage firm said.
Meanwhile, Coal India’s board of directors is scheduled to meet on Monday, June 14, 2021 to review the company’s audited financial results for the quarter and fiscal year ended March 31, 2021, as well as to consider the recommendation of the latter. dividend for 2020-21 (FY21).