Coal India share price down 4%: Should you Buy, Sell or Hold the stock?

livemint.com:

Coal India share price corrected more than 4.0% in the intraday trades on Tuesday. The Coal India stock that has scaled 52-week highs of ₹487.75 on 16th February after having more than doubled from 52 week lows of ₹207.75 on MArch'2023, has given up some parts of the gains. The volume outlook for Coal India remains strong as was highlighted by the management during the recent investor presentation on 19th February.

Highest ever 9M Coal production of 531.90 MT and Over burden removal of 1404.85 MCuM was achieved during 9M of FY 23-24 marking a growth of 11 % and 22 % respectively. The strong power demand in the country has lifted col Demand and in turn of Coal India's produce. During April-Dec of FY 2023-24, Coal India supplied 552.03 MT of coal against 507.8 MT of coal supplied during the same period last year thereby registering a growth of 8.7%.

Supplies to power sector also increase by 4.9% y--y. during the same period. As the volume growth run rate stay strong Coal India forward guidance for volumes was slightly lower than earlier guidance, which analysts said that was already high.

Analysts at Nuvama Institutional Equities said that Coal India lowered the volume guidance for FY24 and 25 to 770 million tonne (MT) and 838 million tonne compared to 780mt and 850mt guided earlier (which anyway was very high). The calibrated volume guidance is due to lower volume from SECL (subsidiary), which, in turn, was due to land shortage (hit volume by 8–10mt), added analyst. However, Nuvama analysts say that they had already factored in volume of 752mt and 790mt for FY24 and FY25 (estimates) and, hence, do not expect any risk to their volume and earnings estimates.