Coal India surging after a healthy business update from the miner for December and also, higher global prices are an additional tailwind given Indonesia’s ban on coal exports.
The stock is buzzing on the back of the following big factors:
Its performance in December 2021 was good with an off-take in excess of 15-16 percent on year on year (YoY) basis.
the global news also seems to be playing a role as Indonesia has banned thermal coal export. This has sparked off hope that global coal prices will move higher in the near term and could possibly have some positive rub off on e-auction prices.
Also Read: Will try to give maximum dividend payout to investors: Coal India
Coal India has always enjoyed valuations support as it trades at just 6-7times FY23 EPS, 3 times EV/EBITDA and a dividend yield of more than 10 percent.
Also Read: India’s largest coal block in Bengal will displace nearly 21,000, 43% of them from ST
Watch the accompanying video of CNBC-TV18’s Nigel Dsouza for more details.