InvestorQ : Why did Coal India hit a 52-week high on 23 September and what is triggering the rally?
Katherine Gonsalves made post

Why did Coal India hit a 52-week high on 23 September and what is triggering the rally?

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rhea Babu answered.
3 months ago
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Even as steel and other commodities have been in the midst of a global rally, Coal India touched a 52-week high of Rs.170 on 23rd September. If you just look at the price movement in the last 1 month, Coal India rallied a huge 27% after it reported a likely price hike on coal across customers to compensate for its higher wag costs. It must be remembered that Coal India remains a predominant near monopoly in Indian coal mining.

This is despite the opening up of the coal sector to private commercial mining. Coal India has aggressive expansion plans and has projected 1 billion tonne coal production by FY24. This will domestically meet the entire coal demand for the Indian economy, including the biggest consumer of coal, the power sector. A sharp recovery in power demand in the last few months had resulted in a 64% spike in EBITDA of Coal India for June 2021 quarter.

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