JP Morgan upgrades Coal India to 'neutral'
Reuters Market Eye - J.P.Morgan upgrades Coal India Ltd (COAL.NS) to "neutral" from "underweight", saying the drop in the share price this year is making the risk reward "relatively more attractive."
The investment bank expects Coal India to pay out a dividend at 45 percent and sees a likely increase in power coal sale prices.
The government's planned stake sale would be an opportunity to add the stock, J.P. Morgan adds.
Coal India shares gain 0.7 percent, after falling 16.4 percent this year, underperforming a 3.6 percent fall in the Nifty this year.
(Reporting by Manoj Dharra)
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The government sold a 10 percent stake in state-run behemoth Coal India on Friday, in a bumper sale which saw demand from institutional investors marginally exceed supply, giving a welcome boost to the government's faltering divestment drive. Full Article