Coal India (CIL) reported in line consolidated net sales of Rs174.8bn, up by 8.2% yoy in 2QFY16, due to higher coal off-take (10.4% yoy). However, reported PAT, which was up by 16.0% yoy came in at Rs25.4bn, below our expectation of Rs27.5bn due to lower-than-expected operating margins. CIL has corrected recently by 25% as 1) the GoI intends to disinvest 10% stake and, 2) fall in e-auction coal prices is near term overhang on the stock. Earlier in the similar divestment event, stock did recover sharply post 10% stake sale in January, 2015. We believe that the positive initiatives taken by the Ministry to...