13 hrs ago
Brokerages Raise Coal India Targets Amid Tighter Coal Supply
Coal India is a company that supplies coal to power plants.
Two brokerages recently reviewed its shares.
Equirus became more positive and gave the stock an “Add” rating.
It set a target price of Rs 450 by December 2027.
Nuvama was less positive, giving the stock a “Hold” rating, but raised its target price to Rs 454.
Power generation has increased, while coal stocks at power plants have fallen.
This could make coal more valuable at auctions.
Coal India’s shares were recently trading at Rs 432.85.
Equirus upgraded Coal India to “Add” and set a December 2027 target price of Rs 450.
Equirus said thermal power generation rose 9.9 per cent year-on-year in 5MFY27.
Power plant coal inventories fell to about 23 million tonnes, or roughly eight days of supply.
Equirus expects e-auction premiums to rise from 45–50 per cent to 75–80 per cent or higher.
Nuvama upgraded Coal India to “Hold,” raised its target to Rs 454, and expects volumes to recover.
- Who
- Coal India, Equirus, and Nuvama Institutional Equities.
- What
- Brokerages revised their ratings, target prices, and forecasts for Coal India shares.
- Where
- The developments concern Coal India’s domestic coal supply and power-plant customers.
- When
- The article cites data for April–August 2026, 5MFY27, and forecasts through March 2027; shares were recently quoted at Rs 432.85.
- Why
- Higher thermal power generation and lower power-plant coal inventories may tighten coal availability, support auction premiums, and improve Coal India’s volumes and earnings.
More Positive View
Cautious View
Investment rating
More Positive View
Equirus upgraded Coal India to “Add,” citing tighter coal availability and potential earnings upside.
Cautious View
Nuvama rated Coal India “Hold,” indicating a more cautious stance despite raising its target price.
Coal auction premiums
More Positive View
Equirus expects premiums to increase from about 45–50 per cent currently to 75–80 per cent or higher.
Cautious View
Nuvama’s cited outlook focuses on volume recovery and does not provide the same premium forecast.
Production and volume outlook
More Positive View
Equirus sees tighter supply as a potential source of upside risk to earnings.
Cautious View
Nuvama expects volumes to rise about 8 per cent from September 2026 through March 2027, while noting that recent 6.7 per cent growth was on a low base.
Key facts
- Equirus rating
- Add
- Equirus target price
- Rs 450 for December 2027
- Nuvama rating
- Hold, upgraded from Sell? No; the article says upgraded from its earlier rating without specifying the previous rating.
- Nuvama target price
- Rs 454, raised from Rs 396
- Thermal power generation
- Up 9.9 per cent year-on-year in 5MFY27
- Power plant coal inventories
- Approximately 23 million tonnes, equivalent to about eight days
- Recent share price
- Rs 432.85, up 0.31 per cent
Quotes
Nuvama Institutional Equities
Brokerage covering Coal India and forecasting its future production volumes.
“We expect CIL's volume to rise ~8 per cent over Sep–March 2027 to cater to restocking as well as actual demand from power plants. We thus increase FY27E/28E volume by 1.9 per cent each to 793mt/825mt (5 per cent volume CAGR over FY26–28E)”
businesstoday.in
“Thermal power generation increased 9.9 per cent YoY in 5MFY27, while power plant coal inventories declined to ~23 mt (~8 days), tightening domestic coal availability”
businesstoday.in
Sources
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