CIL, buy on dips: Sandeep J Shah, Sampriti Capital

Sandeep J Shah, CEO, Sampriti Capital, in an chat with ET Now, gives his views on Coal India


Is Coal India more like a must buy at lower levels. The demand for coal in India is insatiable, power capacities are getting set up and all of them are hungry for coal?

Yes, I would agree with you. Coal India is perhaps an exception to the concern on commodity story because the price that Coal India sells its coal is actually at a significant discount to international prices and coal is not a highly traded commodity where we see ETFs or hedge funds actually buying. To that extent there are less excesses in the prices of coal and given Coal India's shear size, monopoly and so on, if this rumour about them not being allow to sell in the auction is not true or if they still get a reasonable prices for their coal for their 10%-15% this is clearly a stock you want to buy on dips and hold for the longer term.