Coal India Mulling Up To 11% Price Hike, Reports PTI; Shares Rise
Shares of Coal India Ltd. gained on reports of the world’s biggest miner of the fossil fuel raising prices.
The Maharatna public sector unit is likely to hike coal prices by 10-11% to account for increased costs and an impending wage revision, newswire PTI reported citing people aware of the development. The Kolkata-based miner has informally discussed the matter with board members and most of them have acknowledged the necessity to rise prices, the report said.
The company is awaiting the government’s nod after which it will take the final call on the hike, it said.
The PTI report, quoting Pramod Agarwal, chairman and managing director at Coal India, said costs of the miner have jumped and “there is no reason” that it should not increase prices of the dry fuel. The company had last hiked prices in 2018.
The revision, it said, is likely add Rs 10,000 crore to the company’s Rs 500-crore wage bill.
Shares of Coal India gained as much as 3.8% to Rs 154.3 apiece in early trade on Monday. Of the 28 analysts tracking the company, 21 have a ‘buy’ rating, four suggest a ‘hold’ and three recommend a ‘sell’, according to Bloomberg data. The 12-month consensus price target implies an upside of 11.6%.