Coal India Has Resistance At Rs 370

Coal India Has Resistance At Rs 370Technical analyst MB Singh has maintained 'hold' rating on Coal India Limited stock with a target of Rs 400.

According to analyst, the investors can buy the stock with a stop loss of Rs 340.

Mr. Singh said that the stock has a strong resistance at Rs 370.

The stock of the company, on April 13, closed at Rs 354.15 on the Bombay Stock Exchange (BSE).

Current EPS & P/E ratio stood at 3.79 and 18.51 respectively.

The share price has seen a 52-week high of Rs 370.90 and a low of Rs 287.45 on BSE.

State owned Coal India Limited (CIL) is making plans to make an investment of about Rs 35,000 crore by the next five years (2015) with the aim to operationalize 142 fresh projects.

The funds would be produced completely from internal accruements.

CIL recorded a net profit of Rs 9,622 crore on gross earnings of around Rs 52,187 crore during the last fiscal (2009-10).

The company had a cash reserve of little more than Rs 39,000 crore.

CIL chairman N C Jha said that out of the overall investment, around Rs 2,400 crore would be utilized for establishing 20 coal washeries having a capacitance of 111.1 million tonne annually to augment calorific value of raw coal by bringing down its ash content and assist power utilities diminish their import dependency.