Coal India rises after foreign brokerage raises target price Coal India's stock climbed 1.27% to Rs 449.05 following a foreign brokerage's decision to increase its target price for the stock to Rs 485. The brokerage cited reasonable valuations and improved earnings prospects as key factors behind the move. The firm expects Coal India's earnings to grow at a compound annual rate of 9% over the next three fiscal years (FY26-FY28), driven by higher e-auction premiums, rising dispatch volumes, and a recovery in power demand. The brokerage also revised its earnings estimates for FY26-FY28, raising them by 1% to 4%. This adjustment factors in stronger e-auction realizations, with dispatch volumes projected to grow at a 5% annual rate. Total dispatches are expected to rise from approximately 735 million tonnes in FY26 to around 810 million tonnes by FY28. The report highlighted the potential for a rebound in electricity consumption, particularly amid forecasts of intense summer conditions and weaker monsoon patterns, which could lead to higher power demand. The brokerage noted that rising international coal prices are positively impacting domestic e-auction premiums, further supporting Coal India's financial outlook. The company maintains a dominant position in India's coal market, accounting for about 60% of the country's total coal demand and nearly 75% of domestic coal production. The brokerage emphasized that Coal India remains an attractive investment due to its strong balance sheet, net cash position, and consistent dividend payouts. The state-owned company is primarily engaged in coal mining and production, with major consumers in the power and steel sectors. Other sectors, such as cement, fertilizers, and brick kilns, also rely on its coal supply. On a consolidated basis, Coal India's net profit fell 15.#power_demand #coal_india #e_auction #foreign_brokerage #steel_sector
