Decent growth in February volumes unlikely to fire up Coal India's stock

The pressure on e-auction premiums, commodity prices led by coronavirus spread and stake sale overhang remain key concerns

Even as markets were choppy on Monday, a decent growth in February coal volumes lifted Street sentiment towards Coal India’s stock pushing it up by over a per cent. The company had consistently reported a decline in volumes during the first half of FY20. Even though some improvement has been reported from the month of December, Q3 still had seen sales volumes decline by 8 per cent year-on-year. So, the latest numbers are some respite.

In fact, February saw a better recovery with production volumes increasing by 14.2 per cent year-on-year to 66.3 million tonnes (MT) while sales volumes grew