Nuvama Downgrades Coal India to Reduce with ₹384 Target Price on Supply Concerns
Nuvama has downgraded Coal India to Reduce with a ₹384 target price, citing excess domestic supply, weak demand, and competition from captive miners limiting price and volume growth. The brokerage highlights concerns about flat e-auction premiums, wage hike risks, and projects a muted earnings outlook with approximately 4% EBITDA CAGR for FY26-28.
Coal's Share in India's Electricity Generation Expected to Fall to 49% by 2035-36
Coal's dominance in India's electricity generation is projected to decline significantly from more than 70% currently to around 49% by 2035-36. This represents a decline of over 20 percentage points, indicating a major transformation in India's power generation mix over the next decade. The shift suggests a fundamental restructuring of the country's energy sector as alternative sources are expected to fill the gap left by reduced coal dependency.