Oct 10, 2011, 12.30 PM | Source: CNBC-TV18
Coal India can move to Rs 400, says Sharmila Joshi, Head of Equities, Fairwealth Securities.
Sharmila Joshi (more)
, sharmilajoshi.com | Capital Expertise: Equity - Fundamental ,IPO
Joshi told CNBC-TV18, "There has been concern on Coal India lately. We have seen with the new mining bill announced, the kind of concerns that were that how would the EPS of Coal India get hit and I think that if you were to take a worse scenario, because in my mind there is not really enough clarity on the bill as yet on how it will really play out for a company like Coal India.
She further added, For 3-4 year kind of period I think there should be absolutely no concern on coal India because I think all these things will also average out and at the end of the day we are talking of raw material like coal, which in an economy like ours is going to be in demand. Plus they have had that preferential pricing coming their way in this last year where other than the essential like the power sector or there on, they can charge a preferential pricing for other sectors.
I think over a period of 3-4 years the negatives that we had for this stock in the last 2-3 months should play out and then you should see coal India really go back to those Rs 400 plus levels hopefully that we have already seen in the stock.