Shares of India’s largest coal producer, Coal India Ltd, have been lacklustre on the bourses. So far this fiscal year, the stock has underperformed the BSE 100 index, despite decent results in the first two quarters. Analysts say sentiment for the Coal India stock has been muted owing to the government’s offer to sell a 3% stake in the company, and the resulting increase in free float.
Further, the launch of the fourth tranche of CPSE Exchange Traded Fund (ETF), which included Coal India in the basket, did not help either. After all, if there are other avenues to buy the same shares, demand in the secondary market naturally gets impacted.
Unfortunately, the company’s recently released coal production and offtake, or sales volume, numbers for November don’t offer much inspiration for investors. Read More