Coal India shares rise in a weak market; This is a key trigger
Published on 04/03/2026 12:40 PM
Coal India shares rise in a weak market; This is a key triggerValuations are seen as supportive. The Coal india stock trades at around 8x FY27 estimated earnings and offers a dividend yield of about 7%.By CNBCTV18.com March 4, 2026, 12:40:38 PM IST (Published)2 Min ReadShares of Coal India Ltd. were trading with gains of over 2% on Wednesday, March 4, even as the company reported a mixed operational performance for February. The stock appears to be gaining on expectations of stronger pricing.
Disruptions in global oil and gas supplies have fuelled hopes of higher coal prices, which could support margins.
Brokerage firm Jefferies expects Coal India’s volumes to grow at a 5% CAGR over FY26-28E, supported by a gradual pickup in demand.
Valuations are also seen as supportive. The stock trades at around 8x FY27 estimated earnings and offers a dividend yield of about 7%.
According to its latest update, coal production in February 2026 rose 0.7% year-on-year to 74.7 million tonnes, compared with 74.1 million tonnes a year ago.
However, dispatches declined 1.5% to 62 million tonnes from 62.9 million tonnes in the same period last year.
For the first 11 months of FY26, production fell 1.7% year-on-year to 683.7 million tonnes, while dispatches dropped 2.8% to 674.6 million tonnes.
On the pricing front, Coal India allocated 10.3 million tonnes through e-auctions in February. The e-auction premium stood at 35% over the notified price, reflecting firm realisations in the spot market.
Historically, e-auction premiums have been volatile, peaking at 228% over linkage coal in FY23. The premium moderated to 58% in Q1FY25 but improved to 62% in Q3FY26, indicating a recovery in pricing traction.
Investors are also betting on a potential rebound in power demand. While demand growth for the first 10 months of FY26 stood at just 1% year-on-year, it accelerated to 5-6% in December 2025 and January 2026, raising expectations of improved offtake in the coming months.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.TagsCoal IndiaCoal India CILCoal India e-auctionCoal India share price