Shares of Coal India ended 5.5% higher on Monday at ₹349 apiece after brokerage firm Jefferies upgraded India❼largest mining company Coal India Ltd. to "buy" from its earlier rating of "hold." Additionally, the brokerage has raised the price target for Coal India to ₹385 per share, a notable increase from its earlier valuation of ₹240.

The stock ended at the highest level since September 2015.

This upgraded target suggests a potential 16% upside from the closing levels observed on Sunday, marking the stock❼highest closure in six years.

According to Jefferies, Coal India❼robust 12% volume growth played a pivotal role in mitigating the impact of reduced e-auction prices and increased staff costsHyderabad Stocks. The company reported a noteworthy 9.2% FSA (Fuel Supply Agreement) volume growth, reaching 154.7 million tonnes compared to 141.6 million tonnes in the previous year.

Realisations also witnessed a positive trend, escalating by 9.1% to ₹1,542 per tonne—surpassing Nuvama❼estimated figure of ₹1,514 per tonne.

Jefferies believes that Coal India❼volume growth trajectory has improved and is likely to sustain amidst India❼rising power demand, while the big impact of wage hikes and a fall in e-auction prices has already come.

State-run Coal India LtdNagpur Investment. has achieved half of its production target of 780 MT for the financial year 2024 in the first seven months.

Overall production figures for the first seven months of the current financial year stood at 394 MT, a growth of 11.9% from the 351.9 MT figure during the same period last year.

Production is generally slow in the first half of the financial year due to the monsoon months.

Jefferies has upgraded Coal India❼financial year 2024-2026 Earnings Per Share (EPS) estimate by 18% to 42% and is now expecting a 5% Compounded Annual Growth Rate (CAGR) for its EPS over the financial year 2023-2026, despite a high base.

Coal India❼shares have rallied 8% over the last month and nearly 40% over the last three months. It was among the top Nifty 50 gainers in 2022 as well. Despite this, at 6.4 times the financial year 2025 price-to-earnings, the stock is trading at reasonable valuations, as per Jefferies.

17 out of the 23 analysts who track Coal India continue to have a "buy" recommendation on the stock. Nuvama has the highest price target on the street for Coal India of ₹404 per share. Jefferies✩arget of ₹385 is the fourth highest on the Street.