Coal India Ltd Shares Surge Over 5%

Coal India Ltd Shares Surge Over 5%
Coal India Ltd Shares Surge Over 5%
Coal India Ltd Shares Surge Over 5%
Coal India Ltd Shares Surge Over 5%

Coal India Ltd Shares Surge Over 5%

Coal India Ltd Shares Surge Over 5%

Coal India Ltd Shares Surge Over 5%

Coal India Ltd shares witnessed an impressive gain of more than 5% on Tuesday, propelling the stock to fresh 52-week highs. Remarkably, it emerged as the top-performing stock among the Nifty 50 constituents.

Improved Earnings and Dividend Expectations Boost Confidence

On the operational front, the production volumes have remained strong with the company having reported healthy sales volume growth during the first half of FY24. Coal India’s first half FY24 production at 333 MT rose 11.3% year-on-year while total supplies also surged to 360.7 MTs during the first half, marking 8.6% y-o-y growth. The rising power demand in the company has been keeping its volume prospects firm.

Rising Demand and E-Auction Premiums

With the monsoon receding and hydropower and wind generation falling, demand for thermal power is set to rise further in the second half FY24, said analysts. The rise in global coal prices coupled with an uptick in industrial activity pushed up the e-auction premium to 106% in September-23 from 54% in June-2023, said analysts at Nuvama Institutional Equities. Prices of thermal coal in the international market have been gradually picking from lows due to fears of impacted gas supplies from Australia, high China imports, lower Russian coal supplies and rise in international crude prices.

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