With the divestment news cropping up once again, Coal India touched its 52 week lows of Rs 274.65 on 6th April and now trades at Rs 280.50 levels. However, looking at the good fundamentals and strong dividend yield, any weakness in the price is always a good opportunity for investors to accumulate the stock.
The company is seeing strong ramp-up in volumes. While for the month of March, volumes may have been soft (production and dispatches growth of 3.4 and 3.5 per cent respectively) full year growth was strong. For FY16, the company’s production and dispatches at 536.5 million tonne (MT) and 532.3 MT have registered a growth of 8.6 per cent and 8.8 per, respectively cent over FY15.