New Delhi: Coal India Ltd shares jumped nearly 4% in intra-day trade on Wednesday after Union Minister of Coal and Mines Pralhad Joshi said India would stop importing thermal coal from 2023-24 and become self-sufficient in mining coal for thermal power plants.
Coal India shares touched a high of Rs 178.55 apiece on Wednesday. The stock closed the session later at Rs 177.80, up 3.5% from its previous close. In the past one year, Coal India shares have lost over 17% compared with a 13% rise in the benchmark Nifty 50 index.
“India will soon become self-sufficient in mining coal for thermal power plants. Working with synergy, the coal ministry will coordinate with the railway ministry and the shipping ministry to evacuate more coal for generating 24x7 electricity for all,” Pralhad Joshi tweeted on Tuesday after attending the 2-day ‘Chintan Shivir’ organized to create a sustainable energy mix in the country.
“Held deliberations on the way forward for the coal sector in the ongoing Chintan Shivir. We discussed many out-of-the-box solutions to overcome bottlenecks in the coal sector which will help Coal India achieve 1 billion tonnes production target by 2023-24,” Joshi added.
State-run Coal India had recently reported a 14.1% fall in consolidated net profit to Rs 3,923.87 crore in the December quarter compared with a year ago. Net sales had dropped 7.8% year-on-year to Rs 21,566.41 crore during the period.
After the Q3 results, brokerage firm ICICI Direct recommended ‘hold’ rating on the Coal India stock with a target price of Rs 200 in its research report dated 13 February 2020.
“CIL reported a steady operational performance for Q3FY20. Going forward, we model sales volume of 600 million tonnes for FY20 and 625 million tonnes for FY21,” said ICICI Direct.