Shares of Coal India Ltd. are up 8% in the last one month and that comes on the back of a 6% surge that it saw during Wednesday’s trading session.

The surge was on the back of some positive commentary from brokerage firm Jefferies, who maintained its “buy” recommendation on the stock with a revised price target of ₹600 from ₹520 earlier.

Jefferies is one of the two brokerages that have a price target of ₹600 or more on India’s largest mining company.

The brokerage wrote in its note that the big fall in e-auction prices appears to be behind. It is projecting the financial year 2025 – 2027 estimates to factor in an e-auction premium of 55-60% from 58% in the June quarter and 228% in financial year 2023.

It also said that India’s strong economic growth should fuel healthy volumes for Coal India going forward.

At 10 times financial year 2025 price-to-earnings, Jefferies called Coal India’s valuations attractive.

“Coal India witnessed supply pressure in the ₹420 – ₹450 range since 2011. The subsequent breakthrough over the same supply zone at about ₹450 has resulted in a well-evolving, sustained uptrend. After nearly nine years, a breakout took place in May 2024, accompanied by significant volume activity. The stock has been confidently trending above its 5 Months EMA support for 12 consecutive months now & never closed below the same,” said Sacchitanand Uttekar of Tradebulls Securities.

“Therefore, it appears that the foundation around ₹450 is solid enough to support further price extension towards ₹640 & any declines towards its 5 MEMA level of ₹486 would provide additional opportunities to add longs,” he added.

Brokerage firm ICICI Direct too revised its price target on Coal India to ₹650 from ₹550 earlier, which is now the highest price target on the street for the stock.

The brokerage wrote in its note that Coal India is well poised for healthy volume growth and its diversification into new sunrise spaces, coupled with a healthy net cash positive balance sheet and robust dividend yield keeps them positive on the stock.

Out of the 26 analysts that have coverage on Coal India, 19 of them have a “buy” rating, four say “hold,” while three of them have a “sell” recommendation.

Shares of Coal India are currently trading 0.4% lower at ₹529.15. The stock has risen 39% so far in 2024. The stock has delivered positive annual returns every year starting 2021.