InvestorQ : Why did Coal India rally to a year high on Friday?
Rutuja Nigam made post

Why did Coal India rally to a year high on Friday?

1 year ago

Coal India touched a 52-week high of Rs 164 on Friday on hopes that its earnings outlook for the quarter and forward would be better. In just the last 2 weeks, Coal India has rallied 12% as against just 2% gains on the Nifty. After a very long time, the market cap of Coal India is back at Rs.100,000 crore. For the month of May 2021, the coal dispatch volumes were up 37% at 55 million tons. The demand largely came from coal fired thermal power generation.

Along with the recovery in demand, the e-auction premiums as well as realisations have shown signs of a sharp improvement. Most of the analysts are expecting that the profits of Coal India should sharply recover in the fiscal year FY22. This would be triggered by recovery in demand as well as infusion of funds from the Atma Nirbhar Bharat scheme.