Coal India shares near 52-week high; Jefferies sees more upside on multiple factors

Shares of Coal India Ltd. will be in focus on Wednesday, March 11, after brokerage firm Jefferies reiterated its 'Buy' rating on the stock and raised its price target.

Jefferies has increased its target price to ₹485 per share from ₹450 earlier, an 8% upward revision. The revised target implies a potential upside of about 9% from Tuesday's closing level.

After an estimated 21% decline in earnings per share between financial year 2024 and financial year 2026, the brokerage expects Coal India's earnings trajectory to improve, projecting a compound annual growth rate of about 9% between financial year 2026 and financial year 2028.

The brokerage said a recovery in power demand, supported by expectations of an intense summer and weak rainfall, could boost Coal India’s volumes.

It also expects higher global coal prices to support e-auction realisations.

Despite rising captive coal production in the country, Coal India has broadly maintained its roughly 60% share in India's coal demand, Jefferies noted.

The brokerage added that the stock's valuation remains attractive at about 9.3 times financial year 2027 estimated price-to-earnings, along with a dividend yield of around 6%. Jefferies has also raised its earnings per share estimates by 1% to 4%.

Of the 25 analysts that have coverage on Coal India, 12 of them have a 'Buy' rating, eight recommends 'Hold', while five others have a 'Sell' recommendation on the stock.

Shares of Coal India settled 1.33% higher on Tuesday at ₹443.45. The stock has gained nearly 11% so far in 2026.

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