Coal India Shares Slump Over 4 Per Cent, See What Led To The Decline

The shares of the state-owned miner slipped on March 3 following the company’s business update for Feb, which showed a fall in production and negatively impacted the investors’ confidence in the firm.

During the current fiscal year, the public company has managed to supply about 560 MT of coal to power sector and almost 134 MTs to NPS consumers, as of February.

Source : Coal India

Coal India saw a slump in the share market on Monday as the company’s stock tanked close to 4 per cent. On the NSE, the firm’s shares traded at Rs 357.95 around 10:10 AM. As the session progressed, the company managed to see some recovery in the stock market, however, the situation remained bleak.

Around 10:40 AM, on the BSE, the shares of Coal India traded at Rs 359.25 apiece, declining 2.67 per cent, while the firm clocked a price of Rs 358.95 per share on the NSE at the same time, registering a fall of close to 3 per cent in the stock price.

Weak Business Update Harmed Sentiment

The shares of the state-owned miner slipped on March 3 following the company’s business update for February. The update highlighted a fall in production and negatively impacted the investors’ confidence in the firm.

The company’s production decreased 0.8 per cent in February on year-on-year (YoY) basis to 74.1 MT (million tonne), bringing its whole year output to 695.3 MT, inching up 1.5 per cent, reported Moneycontrol. 

During the current fiscal year, the public company has managed to supply about 560 MT of coal to power sector and almost 134 MTs to NPS consumers, as of February.

However, the company’s target for 2024-25 fiscal year (FY25) stands at 838 MT, meaning it needs to produce 142 MT in March to be able to meet the annual guidance. The current output so far reflects only 83 per cent of the company’s complete target. Offtake of the firm also declined 4.8 per cent YoY to 62.1 MT in February, while year-to-date offtake climbed only 1.3 per cent to 693.4 MT.

At 11:25 AM, the firm's shares continued to crash and stood at Rs 353.75 apiece on the NSE, clocking a fall of more than 4 per cent.

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