CIMB also slashed FY19-21 blended coal average selling price by 1-2 percent.
Coal India fell 0.4 percent in morning on Friday after global research house CIMB has reduce call on the stock and slashed its target price to Rs 212 from Rs 245 earlier.
The reason behind cutting price target and having reduce call is earnings concerns going ahead.
The investment firm cut its FY19-21 EPS estimates by 7-19 percent and cut sales volume growth forecast to 6 percent from 8 percent per year in FY20-21. It also slashed FY19-21 blended coal average selling price by 1-2 percent.
CIMB raised its provisions by 140 percent to factor in higher provisions for coal quality variance. Hence headwinds remain for the stock, it said.
At 09:50 hours IST, the stock was quoting at Rs 234.75, down Rs 0.25, or 0.11 percent on the BSE.Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.The Great Diwali Discount!
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