Coal India Shares End 3% Lower Despite Nifty-Sensex Relief Rally: Buy or Sell Maharatna PSU Stock?

Shares of Coal India defied the bullish market sentiment and ended in red on Wednesday, April 8. While the Indian stock market made a sharp recovery amid improving geopolitical sentiments, the Maharatna PSU saw selling pressure after releasing its fourth quarter update.

Coal India share price closed 2.95% lower at Rs 449.2 per share on BSE with a market capitalisation of Rs 2,76,829.76 crore. The stock had touched an intraday high of Rs 464.90 per share and an intraday low of Rs 447.05 per share. Meanwhile, Nifty 50 closed 3.5% higher above 24,000 mark and Sensex rallied around 3,000 points on Wednesday.

Coal India Share Price Recommendation

Coal India's production in the financial year 2025-26 fell by 1.6% on a year-on-year basis to 768 mt. Additionally, the offtake was down 3% on an annual basis at 735 mt. The muted volume of Coal India was primarily attributed to increased competition from captive/merchant coal producers. The company is expected to post modest volume CAGR of 2% over financial year 2026-28E, as per Motilal Oswal report.

Strong coal demand outlook in India, increase in operations, and rise in e-auction volumes will also help Coal India in this financial year. "We expect COAL to post a 2% volume CAGR for FY26-28E, while a higher share of e-auction volumes, with a premium of ~70% over FY26-28E, will support overall NSR and margins. This is expected to translate into a CAGR of 5% in revenue and EBITDA over FY25-28E," noted the brokerage in its report and maintained 'Buy' recommendation for Coal stock.

Coal India Share Price Target

Motilal Oswal maintained its 'Buy' target for Coal India with a target price of Rs 535 per share. "At CMP (based on Tuesday's closing of Rs 463 per share), the stock is trading at 4.8x on FY28E EV/EBITDA. We reiterate our BUY rating with a TP of INR535, valuing the stock at 5.5x FY28E EV/EBITDA."

Coal India Share Price Trend

Coal India shares closed in red on Wednesday. The stock has touched 52-week high mark of Rs 475.95 per share on Marh 13, 2025. The stock dipped to its 52-week low mark of Rs 368.55 per share on August 28, 2025. Coal India share price has a return on equity (ROE) of 89.33%. Coal India stock has delivered 12.2% return since the beginning of the year 2026. The stock has jumped 66% in one year.

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