Explained: Why Coal India shares are surging - Times of India

Explained: Why Coal India shares are surging – Times of India

[ad_1]

NEW DELHI: Shares of state-run Coal India on Thursday jumped over 7 per cent in early trade to Rs 198 on the BSE.
However, it gave up some gains in the later part of the day to finish the session 2.19 per cent higher at Rs 188.9 and it closed at Rs 188.85 on the broader NSE Nifty.
In the previous session, the stock had closed at Rs 184.85 per share on the BSE sensex. This shows that today’s closing is 2.21 per cent higher than yesterday.
During the day, Coal India shares neared its 52-week high price of Rs 203.85. It had breached this price level on October 6 last year.
In the last 5 sessions, the stock has jumped 26 per cent from its closing price of Rs 149.95 on February 24 to Rs 188.9 today.
The strong performance comes after the company said that it produced 64.3 million tonnes of coal in February, registering a growth of nearly 4 per cent compared to the year-ago period.
Coal India had produced 61.9 MT of coal in the corresponding month of previous fiscal.
On a month-on-month basis, CIL’s average production increased to 2.3 MT per day in February. So, despite being three days lesser than January, the sequential production in February was at par with the previous month. CIL’s all out efforts are focused on ending FY’22 in the realm of 630 MT, the company said in an official statement.
CIL’s production at 542.4 MT during April-February period of FY’22 was a historic high for this period. Coal output surged ahead 27.3 MT in absolute terms on a year-on- year comparison.
The company’s subsidiary Northern Coalfields Ltd is set to cross its production target of 119 million tonne for the current fiscal, and its aim of making a capital expenditure of Rs 1,640 crore remains on track.
“Given the trend, we expect to cross the production target of 119 mt. We operate 10 fully mechanised open cast mines in Singrauli and Sonbhadra. Our annual off-take target is 126.5 mt and it stands at 114.74 mt till now with 16.37 per cent y-o-y growth.,” a company official told news agency PTI.
(With inputs from PTI)



[ad_2]

Source link

Leave a Comment

Your email address will not be published.