Coal India a portfolio stock, says Phani Sekhar

Phani Sekhar, Fund Manager of Angel Broking told CNBC-TV18, “Coal India is a good stock for the longer term. The only difference in strategy would be whether you can be opportunistic in entering it. So, while I am quite optimistic about the longer term prospects of Coal India, but the impending offer for sale (OFS) is clearly an overhang which will play itself out. So, till we don’t know at what price the OFS is going to happen this stock at some point in time will run into resistance purely technically.”

“So, the investor can wait a bit because the stock is not going to run away very fast. And generally you have seen that whenever these kind of secondary issues happen stocks do come under pressure and then you get into it because with a 4 percent price realisation and at least 3-4 percent volume growth expected next year one is looking at exciting prospects for Coal India. Besides that the monopoly power of Coal India is not going to be compromised at least in the next five years or so. So, this is an excellent stock to be had in the portfolio. It is just a matter of waiting a little bit for your price to come, so maybe around Rs 300 it is a good buy,” Sekhar further added.