Coal India shares surged over 4 per cent on Thursday, following the announcement of May production and offtake numbers.
State-run Coal India said its coal production in May rose to 42.6 million tonnes (MT) from 40.1 MT in April. Coal India's May output numbers were 95 per cent of its target. In the previous month, Coal India had achieved 91 per cent of its target.
Coal India's offtake also rose to 45.53 MT in May as compared to 42.4 MT in April. The company achieved 89 per cent of its offtake target in May as compared to 83 per cent in April.
"There are reports of Indonesia, China cutting down coal output. Internationally also coal prices have bottomed out," said G. Chokkalingam of Equinomics Research. He said Coal India's fundamentals are changing, making it an attractive bet for investors.
Mr. Chokkalingam told NDTV Profit that Coal India could announce a special dividend in next two years.
Coal India shares closed 3.42 per cent higher at Rs 307.35 apiece. It was the top gainer among Nifty50 stocks.