Analysts across various brokerages either upheld or increased their price targets for Coal India (CIL) after the company's second-quarter results surpassing market expectations. Witnessing a surge of 5.3%, the stock soared to a 52-week high of ₹350, emerging as one of the most significant gainers on Monday.

Despite this positive trend, the average price target on Coal India, compiled by Bloomberg from various analysts following the second-quarter results, stands at ₹338.22. This figure represents a marginal 3% decline from its closing price of ₹349.35 on Monday.

Jefferies, a brokerage firm, highlighted an improved earnings outlook for the company, citing enhanced volume growth and a cost trajectory that was lower than anticipated. Consequently, they upgraded the EPS estimates to a range of 18-42% for the fiscal years 2024 through 2026.

Jefferies noted, "Coal India's volume growth trajectory has strengthened and is expected to continue amidst India's escalating power demand, while the significant impact of wage hikes and e-auction price reductions has already materialized." Despite the stock's impressive 38% rally over the past three months, the brokerage emphasized that it is currently trading at a reasonable valuation of 6.4 times FY25 estimates in terms of price-to-earnings.

Motilal Oswal considers CIL as the top choice in the mining sector due to its strong performance, optimistic outlook regarding volumes spurred by robust demand in the power sector, increased e-auction premiums, and reduced costs.