The Coal India stock rose up to 7.69% on Tuesday after the state run miner said its board has approved a hike in non-coking coal prices for both power and non-power consumers with immediate effect.
At 2:45 pm, the stock was trading 5.71% or 16.45 points higher at 304.15 level on BSE. On the NSE , the stock was up 6 percent to 304.70.
The stock is the top Sensex and Nifty gainer today.
On the equity volume front, over 2.5 crore shares changed hands on NSE. On BSE, 13.73 lakh shares of the firm were traded till 2:52 pm. The stock is up 14 percent or 37 points since the beginning of this year. It has delivered 1.215% returns during the last one year.
The stock closed 5.63% or 16 points higher at 304 level on BSE. On Nifty, the stock closed 5.76% higher at 304 level.
G. Chokkalingam from Equinomics wrote Coal India (CIL) has revised upwards the prices of non-coking coal with effect from January 9, 2018. Due to this revision, CIL will earn an incremental revenue of Rs 1,956 crore for the balance period of FY2018 and projected incremental revenue for FY2019 would be Rs 6,421 crore. Last month also, CIL levied evacuation charges of Rs 50 per tonne which is expected to earn an additional revenue of Rs 2,500 crore annually. As a result of price hike and additional levy, Coal India's total income would rise by Rs 8,900 crore annually which is significantly more than Rs 5,700 crore the company would add to the total wage bill on account of 20% rise in workmen's salaries.
Equinomics continues to recommend a HOLD on the stock with a revised target price of Rs 330 per share.
The miner was compelled to revise prices in the wake of rising costs which was a drag on its profitability for the last few quarters.
Coal India is a coal mining company, which is engaged in the production and sale of coal. The company offers products, including coking coal, semi coking coal, non-coking coal, washed and beneficiated coal, middlings, rejects, coal fines/coke fines, and tar/heavy oil/light oil/soft pitch. Its middlings are used in power generation, brick manufacturing units and cement plants.