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Coal India Shares Upgraded by Morgan Stanley, Price Target Raised to ₹480
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CNBC TV18•22-09-2026, 08:20
Coal India Shares Upgraded by Morgan Stanley, Price Target Raised to ₹480
- •Morgan Stanley upgraded Coal India stock to 'Overweight' with a new price target of ₹480 per share, implying a 15.75% upside.
- •The upgrade is driven by expectations of accelerating thermal power demand, low plant inventories, and rising global thermal coal prices.
- •These factors are anticipated to support volume growth, e-auction premium expansion, and strong earnings upgrades for Coal India.
- •Morgan Stanley revised its FY27 EPS estimate by 20% due to updated volume and e-auction premium estimates.
- •Despite a 5.7% production decline in August, Coal India's offtake increased by 5.5%, and e-auction premiums showed significant growth.
Key Questions Answered
Morgan Stanley upgraded Coal India to an 'Overweight' rating and raised its price target to ₹480 per share, which implies a potential upside of 15.75% from its previous closing level.
The upgrade is driven by accelerating thermal power demand, sharply de-stocked plant inventories, and rising global thermal coal prices that support volume growth and e-auction premium expansion.
Coal India's production for August declined 5.7% year-on-year to 47.5 MT, whereas offtake increased by 5.5% to reach 60.6 MT.
