PSU Stock To Buy: Sharekhan picks this Maharatna company scrip trading under Rs 525 | Check out target and stop loss

Maharatna PSU Stock To Buy: Coal India, the largest coal producer in both India and the world, is currently a strong investment opportunity. On Thursday, the stock closed at Rs 523, down by more than one and a half percent. However, brokerage firm Sharekhan has recommended that positional investors consider buying shares of this Maharatna company. On August 7, the stock saw a significant surge of six and a half percent. Here’s a detailed look at the investment prospects.

Coal India Share Price Target

Sharekhan has recommended buying Coal India shares within the Rs 528 - Rs 533 range, with a stop-loss at Rs 500 for positional investors. The first price target is set at Rs 575, with a second target of Rs 590. Notably, on August 1, Coal India's stock reached an all-time high of Rs 542.

Strong outlook for Coal India stock

According to the brokerage, Coal India’s business in coal production and sales remains robust. The company contributes 82 per cent of India’s total coal production and operates 82 mining areas nationwide. It offers a dividend yield of around 5-6 per cent, providing a significant advantage for investors. Continued healthy growth is anticipated in coal lifting.

Coal India Share Price History

Looking ahead, Coal India may divest its stake in Bharat Coking Coal Limited, with plans to list the company separately, potentially unlocking further value. Over the past three months, Coal India has delivered a return of 12 per cent, 37 per cent year-to-date, and 125 per cent over the last year. The two-year return stands at approximately 260 per cent.