Coal is the new gold: Know why Coal India stock rose 6% in today's bear market?

Coal is the new gold: Know why Coal India stock rose 6% in today's bear market?

by 5paisa Research Team Last Updated: 2022-12-10T16:36:59+05:30

Coal India Ltd( CIL)soared 6 per cent in today’s trading session touching a high of Rs 192 on the back of the record high coal supplies at 608.15 MT as of March 4.

It is noteworthy that the previous highest coal off-take at 608.14MT was achieved for FY 2019. The company had pipped the 575 MT total coal dispatch of FY21 on February 16. Off-take ending FY20 was around 580 MT.

CIL’s current off-take is averaging a little over 2 MTs per day and is expected to go up higher as the month progresses. CIL is concentrating its efforts to increase its supplies further in a bid to touch the 670 MTs off-take mark in FY2022.

Almost all CIL subsidiaries are ahead in their respective coal off-take numbers over the corresponding period last year.

Commenting on the record-breaking numbers, Coal India chief Pramod Agrawal pointed out the “sustained efforts and inspired performance” of CIL’s subsidiaries and has written to them “to end FY’22 on a sound note scaling even more highs”.

Last one week, when the stock market has experienced extreme volatility amid Russia Ukraine war and soaring oil prices, the state-owned coal miner had logged a gain of 12.1% on the bourses Meanwhile, the benchmark indices BSE Sensex tumbled 6.2% and Nifty50 lost 5.7% while sectoral index S&P BSE Energy of which CIL is a constituent lost 2.7%.

On one monthly basis, CIL has registered a gain of 16.9% compared to S&P BSE Energy Index losing 3.2% and Sensex shedding off 8.6%.

Today, Coal India is trading at Rs 188.85 apiece with an intra-day high and low of Rs 192 and Rs 181.7.

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