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)
Trending On Reuters
There is a better than even chance that the Reserve Bank of India (RBI) will cut interest rates at its policy meeting on Sept. 29 thanks to inflation striking a record low, according to a Reuters poll, marking a shift in expectations from earlier. Full Article | Related Story