Morgan Stanley assigns 'overweight' rating to CIL; Rs 525 target implies nearly 28% upside

Coal India Share Price News: Coal India Ltd (CIL) shares were in focus on Wednesday after foreign brokerage Morgan Stanley initiated coverage on the PSU stock with an 'overweight' rating. The Coal India stock—traded with the symbol COALINDIA on bourses BSE and NSE—gained by as much as Rs 9.6, or 2.3 per cent, to Rs 421.2 apiece in early deals on BSE. 

At 9:30 am, the CIL stock was holding on firmly to green territory, up 2.0 per cent for the day at Rs 420 apiece on the exchange.

The stock traded with healthy volumes, as mere 15 minutes into the day's trade, as many as 1.1 lakh CIL shares changed hands as against a daily average of 2.8 lakh recorded in the past two weeks, according to provisional exchange data.

How Morgan Stanley views Coal India, assigns 'overweight' rating with Rs 525 per share target

The foreign brokerage believes Coal India is the key beneficiary of an upcycle in the demand for power in the country.

A strong power demand outlook bodes well for Coal India, with volumes expected to be the key earnings driver over the medium term, according to Morgan Stanley analysts. 

Morgan Stanley also expects Coal India's strong balance sheet to aid its investments.

What Morgan Stanley's target means for Coal India shareholders

The brokerage's target price of Rs 525 implies a potential upside of 27.6 per cent in the PSU stock from its previous close. 

Coal India Shares 

Coal India shares have grown about 21 per cent in the past year, in line with a 22 per cent gain in the headline Nifty50 index.

Commercial coal mine dispatches at record high

Domestic commercial coal mines hit their highest-ever single-day dispatch of 0.617 million tonnes (MT) on November 24, according to official data released this week. This marks growth of 36 per cent compared over the corresponding day a year ago.

The record dispatch comprised 0.536 MT to the power sector and 0.081 MT to the non-power sector, showcasing the robust performance across multiple sectors of the economy, according to the coal ministry.

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