Global Markets
Home›Global Markets›Asia›Nuvama upgrades Coal India to Buy, lifts target on hig…
Nuvama upgrades Coal India to Buy, lifts target on higher e-auction premiums
The brokerage cited Coal India’s September 2026 offtake rising 12.5% year-on-year to 61.2 million tonnes, and raised FY27/FY28 EBITDA estimates by 6%/4%.
Coal India’s stock received an upgrade from Nuvama Institutional Equities, which moved the shares to a Buy rating and increased its target price to ₹501 from ₹454, according to LiveMint Markets. The brokerage’s note pointed to stronger growth in both volumes and e-auction premiums.
Nuvama said Coal India’s offtake climbed 12.5% year-on-year to 61.2 million tonnes in September 2026, the fifth straight month of volume growth. It also cited increases of 12% for Q2 FY27 volumes and 7.6% for H1 FY27 volumes.
On forecasts, the firm raised its FY27 and FY28 EBITDA estimates by 6% and 4%, respectively, factoring in higher volumes and e-auction prices. Nuvama added that higher thermal power generation, lower coal inventories at power plants, and elevated imported coal prices supported the improved outlook.
Nuvama also said the stock trades at about 4.1 times FY28E EV/EBITDA and offers an estimated 6% dividend yield. It highlighted strong power demand and critically low coal inventories as factors that could support continued volume growth in the second half of FY27.