Coal India slips 1% as HDFC Securities initiates sell with target Rs 199

Shares of Coal India fell 1.5 percent in the early trade on Thursday after research house HDFC Securities has initiated sell with target price of Rs 199 per share.

According to HDFC Securities the company's profit growth lags the volumes, while pricing power is restricted.

The company’s pricing methodology has no profit maximization motive. The capex is on an uptrend, but not driving profits higher, it added.

At 09:24 hrs Coal India was quoting at Rs 249.60, down Rs 2.25, or 0.89 percent on the BSE.

The share touched its 52-week high Rs 316.55 and 52-week low Rs 228.50 on 27 February, 2018 and 10 December, 2018, respectively.

Currently, it is trading 20.93 percent below its 52-week high and 9.54 percent above its 52-week low.