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Coal India reported a production decline of close to 1% for the month of January compared to the same month last year at 77.8 MT.
For the first 10 months of financial year 2025, Coal India has mined 621.1 MT of Coal, which is 1.8% higher than the financial year 2024 figure of ₹610.3 MT.
The figure for the first 10 months of the financial year is 74.1% of the company’s financial year 2025 production guidance of 838 MT.This leaves the company with 207 MT of potential production to be achieved in the final two months of the financial year.
Post its quarterly results, brokerage firm Axis Securities cut its price target on the stock to ₹440 from ₹520 earlier.
The brokerage said that Coal India, to achieve its coal production target of 838 MT for the year, the fourth quarter volumes will have to go up by a steep 37%.
“We now revise our FY25/26 coal offtake volumes to 777 / 823 MT from 808 / 870 MT earlier,” the brokerage wrote in its note.Reports from earlier in the week indicated that five Coal India subsidiaries have missed their production targets for the first nine months of the financial year.
Offtake in January increased by 2.2% from last year to 68.6 MT. For the full year, offtake is also up 1.8% to 630.2 MT.
Nuvama highlighted that apart from Coal production from captive mines, Coal India is also losing market share, which declined to 75% from 78% last year.
Although the brokerage does not see any significant downside on the stock, it would prefer to first see volume growth before entering the stock.
Nuvama has a “hold” rating on Coal India with a price target of ₹419.
Out of the 26 analysts who have coverage on Coal India, 20 of them have a “buy” rating on the stock, four say “hold”, while two have a “sell” rating on the stock.
Shares of Coal India ended 2.6% lower on Saturday at ₹385.35. The stock is down 30% from its peak of ₹543.
