JP Morgan upgrades Coal India on likely coal price hike

JP Morgan upgraded Coal India to "neutral" from "underweight", saying the drop in the share price this year is making the risk reward "relatively more attractive."

The government's planned stake sale would be an opportunity to add the stock, JP Morgan added. Reuters[/caption]

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, JP Morgan added.

Coal India shares gained 0.7 percent, after falling 16.4 percent this year, underperforming a 3.6 percent fall in the Nifty this year.

Reuters