Coal India is approaching a key resistance zone between ₹403–₹405 that could trigger a bullish trend reversal, according to the analyst. A breakout with volume may open upside targets at ₹435, ₹456, and ₹471.
Coal India Ltd faces a significant resistance between ₹403–₹405, where breaking through could mark a bullish trend reversal, according to SEBI-registered analyst Krishna Pathak.
At the time of writing, Coal India shares were trading at ₹401.75, down 0.3% or ₹1.35.
According to Pathak, the stock hitting ₹405 consistently with substantial trading volume will validate the breakout and enable higher targets at ₹435, ₹456, and ₹471.
He also believes that swing traders might find an accumulation opportunity if the stock pulls back to the trendline or 9-EMA zone between ₹385 and ₹390.
Historical price responses indicate that ₹375 serves as a significant support level.
The stock is currently testing a descending trendline, and breaking above it could generate new upward momentum, Pathak said.
In the first quarter of FY2025, the company reported a consolidated net profit of ₹10,959 crores, beating analyst expectations.
The result was supported by a 6.2% increase in sales volumes and a 5% drop in employee costs, which helped offset a 5.5% decline in coal prices.
For the full year FY2024, Coal India reported revenue of ₹1,42,000 crores and a net profit of ₹37,402 crores.
The company maintained an EBITDA margin of 34.2%, a return on equity of 40.27%, and a dividend yield of 6.65%.
The company also maintains a debt-to-equity ratio of 0.076.
Volume growth remains a key monitorable amid competition from private miners, though Coal India’s new ventures in critical minerals and clean coal energy show long-term potential, according to Phillip Capital.
The analyst maintains a positive medium-term outlook, expecting a 4% volume CAGR through FY27, supported by India’s rising energy demand and plans for thermal capacity expansion.
Valuations are now seen as attractive, with a target price of ₹519, Phillip Capital said.
On Stocktwits, retail sentiment was ‘bullish’ amid ‘low message volume.
The stock has declined 4% so far in 2025.
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