Coal India Share Price Surges to a 52-Week High, Defying Market Trends

Coal India Share Price Surges to a 52-Week High, Defying Market Trends

VoM News Desk | October 18, 2023 | 04:33 PM IST | Breaking News | Follow on Google News

Coal India Share Price Surges to a 52-Week High, Defying Market Trends

Coal India Share Price Surges to a 52-Week High, Defying Market Trends

In the world of stocks, one shining star has been Coal India, whose share price has recently soared, defying market trends. On October 18, the stock reached an impressive 52-week high of ₹319.55, marking a remarkable journey for investors. This climb of over 41 percent in the calendar year has left the equity benchmark Sensex, with its mere 9 percent gain, in the dust.

Coal India’s Impressive Turnaround

Just seven months ago, on March 27, the same stock was at its 52-week low of ₹207.70. However, in a short span, it has witnessed a remarkable surge of 54 percent, underlining the impressive turnaround Coal India has undergone.

After the closing bell on Monday, Coal India unveiled exciting news – its supplies to thermal power plants in India saw a substantial increase of nearly 6 percent, reaching 23.5 million tonnes during the first fortnight of October 2023. This is a significant improvement compared to the 22.2 million tonnes supplied during the same period in October 2022. This upswing is driven by a robust power demand, leading to higher requirements from the power sector.

Coal India’s performance in the first half of FY24 is also noteworthy, with production at 333 million tonnes, up by 11.3 percent year-on-year. Total supplies during this period reached 360.7 million tonnes, reflecting an 8.6 percent year-on-year growth. Analysts have praised Coal India’s remarkable growth, considering the high base it has achieved.

Analyst Insights: Fundamental and Technical Views

Manish Chowdhury, Head of Research at StoxBox, believes that Coal India is transcending its typical PSU image with record-breaking production and consistent overachievement of targets. As energy demand continues to rise, and fossil fuels remain essential, the domestic focus of Coal India positions it advantageously for the future. Structural positives like higher volumes from the non-power sector, transparent price discovery, operational efficiency, and prudent cost control measures are all expected to benefit the company in the long term.

Gaurav Bissa, VP at InCred Equities, observes that Coal India has been consistently forming higher highs and higher lows on the weekly charts, and a bullish flag breakout indicates potential for further gains. Traders are advised to hold their positions and watch for a weekly close above ₹350, which could push the stock toward ₹400 levels.

Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, acknowledges Coal India’s impressive return but advises caution, given the high Ichimoku cloud and resistance around ₹318. Monitoring the situation is recommended.

Santosh Meena, Head of Research at Swastika Investmart, suggests a cautious entry strategy due to a supply zone between ₹310 and ₹330. While the market structure remains bullish, investors should await a possible correction for a prudent entry point in the range of ₹275 to ₹260.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.