Coal India soars to an all-time high after chairman says PSU plans to start 5 new mines

Coal India Share Price: Coal India's stock hit an all-time high of Rs 479.90 on BSE on Thursday (February 15, 2024) a day after the PSU chairman said that the company would add new coal mines while expanding the existing ones to meet higher demands.

The stock ended the trading session on Thursday higher by 2.21 per cent, or Rs 10.30, at Rs 476.70.

Coal India shares closed the day's trading on Wednesday at Rs 466.40 each. They started the session on Thursday at Rs 469.90 before hitting an all-time high. The stock's day's low is Rs 467.75.  

What did Coal India chairman say?

In a written response to Reuters, Coal India chairman PM Prasad said that the miner plans to start operations at five new mines with a combined annual capacity of 14.3 million tonnes in the next fiscal year.

Prasad also said that the largest coal miner in the world aims to boost output by more than 7 per cent to a record 883 million tonnes for the next fiscal year starting April 1 with initial stockpiles at 80 million tonnes.

A record output by Coal India - the world's largest coal miner whose profits and share price have surged since early 2023 - is set to boost inventories at power plants running on domestic coal by 16.1% year-over-year to 40 million metric tons by end-March, Coal India Chairman P.M. Prasad said in a written response to questions.

The company is on track to exceed its production target for the second straight year during the fiscal year ending March, Prasad said, after failing to achieve its output goals for 16 straight years.

The stock also hit a 52-week high of 468.50 on February 8 also.