Hold Coal India, says Sharmila Joshi

Sharmila Joshi, Head of Equity, Peerless Securities told CNBC-TV18, "If one buys Coal India it is more to do with the longer term view of what is happening with the demand for coal. As far as coal production is concerned things are okay. Overhang on the stock is because of offer for sale (OFS) issue."

She further added, "Sell-off from The Childrens Investment Fund Management (TCI), which has been an investor, has been fighting it out with Coal India for the longest time. So, that overhang is going to stay on the stock. I would advice one to stay put if one has a long term view on the stock, but not so much on the dividend picture in terms of what the stock has created."
"This whole space whether it is mining, whether it is coal is going through a very difficult period in the Indian context and one has to give some time to also sort itself out," she said. Also Read: CIL to place Rs 2,000-cr order on 7 coal washeries by FY'14