Coal India's stock price rose over 5 percent in morning trading on BSE on Monday. The stock opened at Rs 238.05, up from the previous close of Rs 236.85, and increased by 4.7 percent to Rs 248.90 in trading so far. As of around 11:35 am, the stock was trading 5.05 percent higher at Rs 248.80 on BSE.

Although the stock has underperformed the benchmark Sensex in the last year, with the Sensex gaining over 10 percent, Coal India's share price has increased by about 7 percent in the same period. Coal India's share price reached its 52-week high of Rs 263.30 on November 9, 2022, on BSE. As of the previous session's close, the stock is down 10 percent from its 52-week high level.

However, experts and brokerage firms believe that the stock can move higher from its current levels based on fundamental and technical factors. Brokerage firm ICICI Securities maintains a buy call on Coal India's stock with a target price of Rs 285, implying a 20 percent upside potential.

ICICI Securities highlighted that Coal India's operating numbers for August 2023 were robust, with production and sales volume at the highest-ever level for the fifth successive month in FY24. The volume revival from SECL offset the flat volumes from MCL, and the traditional volume trough in Q2 was much lower in FY24 due to increased rake availability. Additionally, higher volume to the non-regulated sector (NRS), up 61 percent year-on-year in August 2023, is likely to maintain FSA prices, and pithead inventory at 45.3 million tonnes remains at a comfortable level due to production ramp-up.

The brokerage firm believes that Coal India is likely to benefit from operating leverage benefits arising from higher sales volume for both NRS and e-auction customers, despite a much lower e-auction premium than in FY23.