Mumbai, Sept. 22 -- The target price implies an upside of about 12.41% from the current market price.

The brokerage said accelerating thermal power demand, sharply depleted coal inventories at power plants and rising global thermal coal prices could support higher production volumes and e-auction premiums for Coal India.

It expects these factors to drive significant earnings upgrades for the state-run coal producer, which could support the stock in the coming months.

The brokerage raised its FY27 earnings per share (EPS) estimate for Coal India by 20% after revising its assumptions for production volumes and e-auction premiums.

Coal India is India's largest coal producer and a Maharatna public sector undertaking. The company primarily...