JP Morgan reduces Coal India target price to Rs 395 citing multiple headwinds. Stock down 2%
Global brokerage firm JPMorgan reduced its target price for the state-owned company Coal India, following which, the stock fell 1.7% to its day’s low of Rs 358.70 on the BSE. The firm maintained a ‘Neutral’ rating but cut the target price to Rs 395 from an earlier Rs 430, citing multiple headwinds to earnings growth.
JPMorgan highlighted several challenges affecting Coal India’s outlook. A key factor weighing on earnings is the softening of international thermal coal prices due to oversupply, which has pressured margins.
Additionally, JP Morgan’s note also pointed to weak power demand growth in India since August 2024, which has resulted in muted production volume growth and higher-than-average inventory levels.
Another concern…
