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Discom Debt Restructuring may Improve the Valuation of CIL

News

Production and offtake have increased in first half of FY16, but investors don’t seem to be happy as the stock is down about one-fifth from its high in August.
Source: Live Mint

SNP Insight

Decrease in net profit of CIL due to increase in expenditure, fall in international price of coal and plan of divestment of CIL by 10% in the dicey situtation of thermal power plant has shaken the confidence of the investors. But this situation may not be going to last long as the debt restructuring process for the distribution sector starts, fostering the demand for the coal.
Source: SNP Infra Research