Coal India down 1%, analysts mixed on pricing gains

Moneycontrol Bureau

Coal India shares were down nearly 0.6% this morning at Rs 325, after rising around 8% in the last couple of trading sessions. Earlier this week, the company approved a proposal to change its benchmark pricing for non-coking coal to gross calorific value from the current useful heat value.  

Also read: Coal India expects higher revenues to offset wage hikes

This move is expected to boost revenues as well as realization, though the company has not been able to quantify the estimated benefits. Analysts are mixed about the impact of the new pricing policy, as other worries such as wage hikes, Mining Bill, and use of cash reserves, persist.

Deutsche Bank, Rating : Buy, Target: Rs 430

After the price increase taken by management, the second big jump in the last eleven months, investors