Shares of Coal India gained 3.5% to Rs 413.55, also its 52-week high on the Bombay Stock Exchange (BSE), in late morning trade.
In past one-month, the stock has outperformed the market by gaining 12% from Rs 370 on May 25 compared to less than 1% rise in the S&P BSE Sensex.
On the NSE, the stock hit a high of Rs 413.85, a marginal away from its 52-week high of Rs 413.95 touched on June 8, 2015. It hit a record high of Rs 424 in June last year.
Analysts at Prabhudas Lilladher maintain ‘accumulate’ rating with a price target of Rs 422 on the stock.
Management sounded confident to achieve 11%/12% year-on-year growth in production/off take for FY16 on the back of improved rake availability and expedited clearance process. However, management also cautioned about weak demand from power sector and elevated inventory at power stations, Kamlesh Bagmar & Ankit Shah said in report dated June 1, 2015.
Coal India remains our top pick with a strong play on the government led reform across the chain of its operations and attractive dividend yield at around 5%, added report.
At 1157 hours, the stock was up 2.5% at Rs 410 on the BSE. A combined 2.6 million shares changed hands on the counter on the BSE and NSE.
