Production for the month of October increased by 2.3% from the same period last year to 62.5 million tonnes (MT) from 61.1 MT last year.
For the April-October period, Coal India’s production has increased by 2.5% from the same period last year to 403.8 MT, which is 48% of the overall production target of 838 MT that the Coal India has set for the year.
Coal India generally reports lower production in the first half of a financial year due to the monsoon months, while output picks up in the later half of the year.
Offtake for the month of October remained flat, registering a marginal 0.5% decline from October last year to 61.4 MT. For the April-October period, Coal India’s offtake has increased by 1.5% to 428.5 MT.
Among Coal India’s subsidiaries, Eastern Coalfields, Central Coalfields, Northern Coalfields and Mahanadi Coalfields saw production grow between 8% to 11%, while others saw a decline in production that ranged from a decline of 5.5% to as high as 11.1% from last year.
Coal India has not set any offtake target for the year.
Brokerage firm Jefferies, in a note on October 28, wrote that it remains positive on Coal India as it believes India’s strong economic growth outlook should fuel healthy volume growth for the company in the coming years, and a big fall in e-auction prices is now behind.
At 9.3 times financial year 2026 price-to-earnings, Coal India’s valuations are still attractive, according to Jefferies.
However, the brokerage cut Coal India’s financial year 2025 – 2027 Earnings per Share (EPS) estimate by 2-3%.
Out of the 26 analysts that have coverage on Coal India, 19 of them have a “buy” rating on the stock, four say “hold”, while three of them have a “sell” rating on the stock.
Shares of Coal India ended 0.8% higher at ₹452.55 on Thursday. The stock is up 18% so far in 2024.