Ways2Capital Reviews : Coal India Dips Over 1.5%

Coal India shares fell over 1.5%, after a media report indicated a distressing production outlook. The report stated that there is apprehension regarding its distressing performance in over-burden removal, that is, doing away with the topsoil above the mineral being mined.

India's largest coal producer ended the June quarter with 18mn tonnes, growing by 15% since last year. However, with respect to over-burden removal, the Maharatna company is lagging behind. It has removed 0.1% less over-burden than last year during the June quarter, the report added.

Reportedly, this is attributed to various issues like failure to close tenders, surplus rain, and frequent protests.

Coal India holds a dominant market share in coal mining and produces 84% of the nation’s coal output. Coal production for the month of April 2018 stood at 44.8mn tonnes, an increase of 16.7% yoy. The production target for FY19 stands at 630mn tonnes.

Meanwhile, since February 2018, the government has allowed private miners to engage in commercial coal mining, ending the monopoly status enjoyed by Coal India.

The state-controlled mining company is currently trading at Rs261.45 down by Rs3.65 or 1.38% from its previous closing of Rs265.10 on the BSE.

The scrip opened at Rs264.40 and has touched a high and low of Rs265.40 and Rs260.30 respectively. So far 9,31,409 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs1,64,558.42cr.
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About Bhoomi Desai