Shares of Coal India Ltd. fell on Monday after it reported a provisional 11.9% decline in production to 46.1 million tonne in August. The state-owned producer accounted for over 80% of domestic coal output.
The company's coal production was 52.3 million tonne in the corresponding month of the previous fiscal year, the company said in an exchange filing on Monday.
However, Coal India's production in the April-August period rose to 290.4 million tonne, up from 281.5 million tonne in the previous year, the company stated. Coal offtake in August dropped to 52.1 MT, over 59.1 MT in the corresponding month of the previous financial year.
Coal India's production rose 10% to 773.6 million tonne in 2023-24, but fell short of its production target of 780 MT for the fiscal year.
Coal India's stock fell as much as 1.39% during the day to Rs 517.6 apiece on the NSE. It was trading 1.01% lower at Rs 519.6 apiece, compared to a 0.17% advance in the benchmark Nifty 50 as of 10:26 a.m.
The stock has risen 109% during the last 12 months and has advanced by 38% on an year-to-date basis. The relative strength index was at 50.
Nineteen out of the 26 analysts tracking the company have a 'buy' rating on the stock, four suggest a 'hold' and three have a 'hold', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 6.5%.
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