Coal India shares gain 2% despite weak Q1 show. Should you buy them?
Coal India shares jumped 2% to the day’s high of Rs 236 on the NSE in Wednesday’s trade after Indian brokerages took a favourable view on the state miner, notwithstanding a decline in the company’s year-on-year (YoY) net profit. Nuvama remains most bullish on the stock, estimating an upside of 57% while Motilal Oswal and Axis Securities see an uptick of about 15-30%.
Jefferies, on the other hand, has a ‘Hold’ stance while Kotak Institutional Equities recommended ‘Reduce’ based on the continuing downward trend in auction prices which it said weighs on the profitability of the company.
