Sustainability of strong September quarter show crucial for Coal India

Apart from volume growth concerns, low e-auction prices and ongoing coal block auctions are weighing on sentiment

The 31-per cent growth in despatches for September should have given Coal India’s (CIL’s) investors a reason enough to cheer. But it has failed to lift sentiment for the stock, which has been on a downtrend for the past one year and had hit a 52-week low on September 30. Although it gained more than 1 per cent on Monday, it was down 1.4 per cent on Tuesday. So, what is worrying the Street?

The strong growth in September despatches brings some relief to CIL, which has seen continuous pressure on sales during the current year impacted by the Covid-19 pandemic.