JPMorgan upgrades Coal India to 'neutral'

JPMorgan upgraded Coal India to 'neutral' from 'underweight', saying the drop in the share price this year is making the risk reward "relatively more attractive".

The investment bank expects Coal India to pay out a dividend at 45 per cent and sees a likely increase in power coal sale prices.

The government's planned stake sale would be an opportunity to add the stock, JPMorgan added.

Coal India shares gained 0.7 per cent, after falling 16.4 per cent this year, underperforming a 3.6 per cent fall in the Nifty this year.

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