Coal India shares slip 3% post Q2; Angel Broking maintains 'buy'

Shares of Coal India slipped over 3 per cent in trade on Monday even as the world's biggest coal miner posted a 16 per cent rise in consolidated net profit at Rs 2,543.80 crore for the quarter ended September 30.

The company's net profit in the corresponding quarter of the previous fiscal was Rs 2,192.38 crore, Coal India (CIL) said in a filing to BSE.

The stock ended 1.94 per cent down after hitting an intraday low of Rs 326.95, down 3.16 per cent on the Bombay Stock Exchange (BSE).

Broking firm Angel Broking believes the slow growth in production remains a concern for Coal India, but off-take is increasing at an healthy pace.

The brokerage maintains a 'Buy' rating on the stock with a price target of Rs 400.

Meanwhile, the consolidated net sales of the company was at Rs 16,957.59 crore during the quarter, registering an increase of eight per cent.

The company's consolidated net sales in the corresponding quarter of the last fiscal was Rs 15,677.98 crore.

"The increase in earnings is largely due to the higher production and offtake during the current period compared to the corresponding period in the previous year," it said.