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JPMorgan’s price target implies a potential upside of 8% from current levels for shares of Coal India.
The brokerage said it sees headwinds from softening international thermal coal prices due to oversupply, weak power demand growth in India since August 2024, which has led to muted production volume growth and higher-than-average inventory levels.
It said it also sees headwinds from sharp rise in coal despatch growth year-to-date from captives leading to a market share loss for coal.
With only two months to go for the financial year to complete, Coal India has managed to reach about three-quarters of its financial year 2025 production guidance of 838 MT.
JPMorgan has cited two conditions on which it can turn constructive on the stock. One is in case the stock falls below levels of ₹340 per share, which is a downside of another 6% from current levels, or in case India’s power demand growth materially improves in the coming months.
Out of 25 analysts that have coverage on Coal India, 19 have a ‘buy’ rating, four have a ‘hold’ rating and two have have ‘sell’ rating.
Coal India shares were trading with losses for the second day on Tuesday, February 25. The stock was down 1% at 361.1 apiece at 1.15 PM. It has declined 33% in the last six months.
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