Coal India Share Price Target 2024: Domestic brokerage firm Motilal Oswal Financial Services remains bullish on the state-owned Coal India stocks and said that the robust demand will drive volume for the company.
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Motilal Oswal believes that Coal India is well placed to capitalise on the growth opportunity ahead. The brokerage expects total sales of 90–92 million via e-auction in FY25E and 112-115 million in FY26.
“COAL is confident of achieving 770mt of production during FY24, with five subsidiaries on track to achieve 100 per cent of the annual production target. It is expected to sell 15 per cent of its total volumes under e-auction at auction-determined prices in FY25E. Domestic power generation is expected to grow by 7.7% to 1,750bu in FY24, which will drive coal demand. Dispatches to coal-fired plants till Jan’24 stood at 509mt (up 7.3mt YoY) and are expected to cross 610mt in FY24E,” said the brokerage in their report.
According to Motilal Oswal, the Coal India is expected to dispatch over 610 million to the power sector in FY24E, and volumes to the power sector are expected to grow by ~50 million in FY25E and FY26E. The brokerage has said that softening the e-auction premium remains their only concern for coal in India.
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Coal India Share Price Target 2024
At the current market price of Rs 456, the brokerage sees over 14 per cent upside potential in the Coal India stock and has assigned a price target of Rs 520.
Coal India Share Price History
According to the BSE analytics, Coal India stock has jumped 0.76 per cent in the last one week, 8.65 per cent in the last one month, and 17.12 per cent in the last three months. Coal India stock has offered a return of 46.49 per cent in the last six months and 99.91 per cent in the last one year, as per the BSE data.
PSU company’s stock has sprinted 141.64 per cent in the last two years and 250.49 per cent from the last three year.
Shares of Coal India were quoted at the 52-week high of Rs 487.75 on the BSE on February 16, 2024, while they were seen at the 52-week low of Rs 223.30 on June 26, 2023.
Coal India commands a market cap of Rs 2,77,877.42 crore on the BSE. The company is a constituent of S&P BSE 100 index.
