New Delhi, September 22, 2026: Shares of Coal India Ltd. gained around 3% in morning trading on Tuesday after global brokerage Morgan Stanley upgraded the stock to “Overweight” from “Equal-weight” and raised its target price to ₹480. The upgrade triggered buying interest in the mining major.
Coal India shares opened at ₹422.90, compared with the previous close of ₹414.50, and touched an intraday high of ₹426.75, representing a gain of about 3%.
Why Morgan Stanley Upgraded Coal India
According to reports on the brokerage’s assessment, the upgrade is linked to several factors, including accelerating thermal power demand, lower coal inventories at power plants and rising global thermal-coal prices. These conditions could support higher coal volumes and stronger e-auction premiums.
Morgan Stanley reportedly raised its FY27 earnings-per-share estimate by 20%, while expecting the company’s valuation multiple to remain around its long-term level.
Coal India’s recent operating data also provides context. For April-August 2026, the company’s coal production was 267.5 million tonnes, down 4.5% year-on-year, while offtake increased 6.7% to 322.9 million tonnes. The company has set an FY27 production target of 815 million tonnes.
E-Auction Premium in Focus
Another important factor highlighted by the brokerage is Coal India’s e-auction performance. The reported e-auction premium increased 46% during April-August 2026, compared with 35% during the corresponding period of 2025.
The stock’s movement comes against a relatively positive session for Indian equities. Reuters reported that the Nifty 50 and Sensex were modestly higher in early trading, while Coal India was among the stocks gaining following the Morgan Stanley upgrade.
The ₹480 target price and Morgan Stanley’s rating represent the brokerage’s assessment and should not be interpreted as a guaranteed future share price.