Coal India shares surged 3.11 per cent to Rs 421.05 on Tuesday as Morgan Stanley raised target price for the scrip on improving outlook.
According to Morgan Stanley, the company looks better positioned for growth with low volatility against rivals in Asia and receding government control may lift margins and returns. It has raised the target price of Coal India shares from Rs 449 earlier to Rs 530 and maintains 'overweight' rating.
Morgan Stanley also looks more convinced about Coal India's volume growth and pricing power.
According to the Bombay Stock Exchange, promoters holding in the company stood at 79.65 per cent at the end of March 2015. Institutions and non-Institutions held 17.81 per cent and 2.54 per cent, respectively. Promoters' holding was around 89.65 per cent at the end of September 2014.
Shares of the PSU have jumped around 6 per cent to Rs 408.35 in the past one year to June 29.
(With inputs from Reuters)
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