Sentiment on the Coal India Ltd stock may have perked up marginally on the back of an encouraging set of March quarter numbers, announced after market hours on Thursday. On Friday, while the broader markets were subdued, the miner’s stock closed slightly higher.
Still, over the medium-term perspective, muted outlook on coal sold through the e-auction route is likely to keep a lid on any meaningful expansion in valuations.
In the fourth quarter, e-auction volumes fell by 43% year-on-year. Although e-auction realizations are typically higher as they are linked to international coal prices, Coal India could not reap the gains from here.
