Shares of state-run Coal India are trading in the oversold zone, making investors worry over the scrip of the PSU behemoth. The stock has entered bearish territory in a volatile market, leaving traders cautious on the outlook of the stock. In the current session, the Coal India stock closed 0.05% lower at Rs 208.45 on BSE. The stock has fallen for the sixth consecutive session. The stock attempted a comeback in the afternoon session and hit an intraday high of Rs 210.20 against the previous close of Rs 208.55 on BSE.
The share has gained 12.66 per cent in one year and lost 7 per cent since the beginning of this year. The market cap of the firm fell to Rs 1.28 lakh crore on BSE.
Total of 3.06 lakh shares of the firm changed hands amounting to a turnover of Rs 6.38 crore on BSE.
The large-cap share hit a 52-week low of Rs 164.75 on May 12, 2022 and a 52-week high of Rs 263.30 on November 9, 2022.
In terms of technicals, the relative strength index (RSI) of the stock stands at 30.8, signaling it’s trading near the oversold zone. Coal India stock has a one-year beta of 0.8, indicating very low volatility during the period. Coal India stock is trading lower than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
HereтАЩs a look at what experts and brokerages expect from the stock in the next one year.
Abhijeet from Tips2trade said, “Coal India has been bearish but now also oversold on the Daily charts with strong support at Rs 207. Investors can buy only if Daily close is above Rs 210 for a target of Rs 226-230 in the near term.”
Financial Services firm Motilal Oswal is bullish on the PSU stock. It has assigned a target price of Rs 275, an upside of 32% to the current market price. The brokerage said a robust domestic demand, enhanced vision of 1bt production, and improved e-auction premium are all set to drive a strong near-term performance for Coal India. Coal India is trading at 3.6 times FY24E EV/Ebitda and 1.8 times FY24E P/B, respectively. The March quarter is a seasonally stronger quarter with the onset of the summer season. The demand for power too increases, consequently driving the requirement for higher coal volumes by power plants.
Motilal Oswal maintained its e-auction premium estimate for FY23 at 231 per cent and reiterated its ‘BUY’ rating on the stock with a target price of Rs 275 (5 times EV/Ebitda). Coal India continues to be Motilal’s top pick in the mining sector.
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