Credit Suisse downgraded Coal India to "neutral" from "outperform" but raised its target price to Rs 380 from Rs 330.
The investment bank said Coal India "is cheap no longer" while noting "it is difficult to see volumes improving within 3-4 years."
Still, Credit Suisse said Coal India shares have uspide risk until the government's restructuring plans are unveiled.
Prime Minister Modi is exploring breaking up Coal India and opening up the sector to foreign investment, two sources with knowledge of the matter told Reuters on May 21.
"Till government's plans for restructuring are known, CIL can become a concept stock with upside risk," Credit Suisse said in a note on Monday.
Coal India shares were flat in trade as of 11:48 a.m.
Copyright: Thomson Reuters 2014