Higher profitability can be led by e-auction prices and volumes
Pressure on imported coal prices will lead to lower e-auction premium
Cooling of international coal prices leads to lower e-auction premium
Cooling of international coal prices in the last few months will lead to lower e-auction premium while higher dividend yield continue to remain the only draw
Investors need to track FSA price revision, wage negotiations and the premium on e-auction.
Investors need to watch out for an increase in wage cost, post revision, increase in e-auction prices
On the eve of New Year, all eyes in the country will be glued to Prime Minister Narendra Modi's televised address to the nation at 7.30 pm.
However, unrelenting in their opposition to his appointment, the students of the Pune-based institution today said they will protest peacefully when he assumes charge.
Coal India (CIL) has not got very encouraging response from the power producers as a result, so far in the current fiscal, the PSU has just imported 5 lakh tonnes of coal
However, brokerages are not perturbed by the earnings and recommend buying the stock. Citi has a buy rating on inexpensive valuations with a target price of Rs 455 per share. It is bullish due to higher volume trajectory up, auction of non-power linkages -pricing upside going forward and 6 percent dividend yield.
"With the approval of the competent authority, it has been decided to revert to the old system (on e-auction)...," the letter said. Under the old system, Coal India was allowed to sell up to 10 percent of coal through e-auction.
Shares of Coal India gained nearly 4 percent intraday Tuesday, hoping coal price hikes for non-power consumers.
Nomura has a buy rating on the stock with a target of Rs 443 per share. It states that CIL‘s 3QFY15 revenues were 2 percent above forecast on the back of higher contribution of e-auction revenues and marginally higher fuel supply agreements (FSA) realisation at Rs 1291 per tonnes.
Coal India has asked power firms to contact its supplying companies in case they need to import coal through them for the coming fiscal.
Harshvardhan Dole, VP Research - Institutional Equities, IIFL does not expect final judgment by the Supreme Court tomorrow as many companies are in the process of filing affidavits, as suggested by the Attorney General. However, he is confident of the final verdict being announced in a few weeks.
The Cabinet Committee on Investment (CCI) had earlier stated that the timelines for signing of fuel supply pacts for power projects of 78,000 MW capacity should be met.
Prasad Baji of Edelweiss is more concerned about the FSA the company has signed for 71000 MW. And the additional 211 million tonne the company will have to meet for these new FSAs.
The Minister said as per New Coal Distribution Policy (NCDP) 2007, CIL has to supply coal to such power plants with which it has entered into fuel supply agreements.
Amid continuous delays, the Cabinet Committee on Investment (CCI) had earlier said that timelines for signing of fuel supply pacts for power projects of 78,000 MW capacity should be met.
Amid continuous delays, the Cabinet Committee on Investment (CCI) had earlier said that timelines for signing of fuel supply pacts for power projects of 78,000 MW capacity should be met.
In an interview to CNBC-TV18, Subhadip Mitra of JM Financial spoke about the current environment in the power and capital goods space
Coal India was listed on the bourses in 2010 after the government raised Rs 15,199 crore by selling 10 percent stake in the country's biggest initial public offering. This divestment would fetch the ex-chequer Rs 40,000 crore in this fiscal.
In an interview to CNBC-TV18, RS Ramasubramaniam, Co-Chairman, Feedback Infra spoke about his outlook on the infrastructure sector in current environment
The government issued a presidential directive to Coal India to enter into fuel supply agreements (FSAs) with power plants for a capacity of 78,000 megawatt (MW).
Power: NTPC's generation fell 4.2 percent YoY due to 1.1 percent YoY decline in coal-based generation and 34.1 percent YoY decline in gas-based generation. Tata Power reported 114.5 percent YoY growth in generation, following the commissioning of the entire 4000 MW Mundra plant, says ICICIdirect.com.