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Coal India spurts over 12% in three days

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Capital Market
Last Updated : Sep 29 2021 | 1:50 PM IST

Coal India jumped 6.93% to Rs 186.65, extending gains for the third session.

Shares of Coal India have risen 12.44% in three sessions from its recent closing low of Rs 166 on 24 September 2021.

The stock hit a 52-week high of Rs 195.80 today. The stock has soared 70.46% from its 52-week low of Rs 109.50 hit on 15 October 2020.

In the past one month, the stock has surged 34.60% as against 5.79% rise in the Sensex. It has jumped 58.56% in the past one year compared with 56.36% surge in the Sensex.

Coal India is in demand recently amid a severe shortage of coal globally.

China is facing a severe shortage of both coal and electricity as the economy has resumed strong growth post Covid-induced lockdowns, but coal mine output has failed to keep up with demand.

China will expand coal procurement at "any price to ensure heating and power generation in winter," the China Electricity Council (CEC) reportedly said on 27 September 2021.

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China and India jointly account for 65% of global coal use and are the two biggest importers of the fuel, followed by Japan and South Korea.

In India, after suffering from a severe wave of Covid infections earlier in the year, the economy has rebounded. Therefore, demand for electricity and coal is expected to increase further as the pandemic continues to ebb and the country's rainy season ends.

Coal India is a coal mining company engaged in the production and sale of coal. As of 30 June 2021, the Government of India held 66.13% stake in the company.

On a consolidated basis, the state-run coal major's net profit jumped 52% to Rs 3,169.65 crore on 37% increase in sales to Rs 23,293 crore in Q1 FY22 over Q1 FY21.

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First Published: Sep 29 2021 | 1:35 PM IST

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