Coal India Ltd fundamental analysis highlights key financial metrics including market capitalization of ₹3,26.502 crore, PE ratio of 8.94, debt-to-equity ratio of 0.08, and return on equity of 52.0% These figures reflect the company’s financial health and current market valuation.
Content:
Coal India Ltd Overview
Coal India Ltd is a major state-owned coal mining company in India, responsible for producing and supplying a significant portion of the country’s coal. It operates through various subsidiaries and plays a crucial role in India’s energy sector, supporting thermal power generation and industrial processes.
The company has a market capitalization of ₹3,26.502 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 2.30% below its 52-week high and 134% above its 52-week low.
Coal India Financial Results
Coal India’s financial results for FY24 show robust performance with sales reaching ₹1,42,324 crore and a net profit of ₹37,369 crore. Operating profit margin improved to 34%, and EPS increased to ₹60.69, reflecting strong financial growth and operational efficiency.
Revenue Trend: Coal India’s sales increased from ₹1,09,714 crore in FY22 to ₹1,42,324 crore in FY24. This growth highlights a positive revenue trend driven by higher demand and effective market strategies.
Equity and Liabilities: Expenses have increased alongside revenue, but Coal India manages its equity and liabilities well. The financial stability is supported by controlled expenses and strategic investments, ensuring long-term viability.
Profitability: Profitability improved significantly, with operating profit rising from ₹24,691 crore in FY22 to ₹47,971 crore in FY24. The Operating Profit Margin (OPM) also increased to 34%, indicating efficient cost management and strong operational performance.
Earnings Per Share (EPS): EPS grew from ₹28.17 in FY22 to ₹60.69 in FY24, reflecting higher profitability and improved shareholder returns. This significant increase highlights the company’s success in enhancing value for its investors.
Return on Net Worth (RoNW): RoNW reflects strong financial performance, showcasing effective utilization of shareholders’ funds. Increased net profit and improved EPS indicate enhanced returns on equity, underlining the company’s financial health and growth.
Financial Position: Coal India’s financial position is robust, marked by higher sales, improved profitability, and substantial net profit. With effective management of expenses and strategic investments, the company is well-positioned for continued growth and stability.
Coal India Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 1,42,324 | 1,38,252 | 1,09,714 |
| Expenses | 94,352 | 1,01,434 | 85,023 |
| Operating Profit | 47,971 | 36,818 | 24,691 |
| OPM % | 34 | 27 | 23 |
| Other Income | 7,969 | 6,551 | 3,905 |
| EBITDA | 55,941 | 43,369 | 28,595 |
| Interest | 819.37 | 684.31 | 541.49 |
| Depreciation | 6,735 | 4,675 | 4,429 |
| Profit Before Tax | 48,386 | 38,009 | 23,625 |
| Tax % | 23.65 | 25.98 | 26.4 |
| Net Profit | 37,369 | 28,125 | 17,378 |
| EPS | 60.69 | 45.7 | 28.17 |
| Dividend Payout % | 42.02 | 53.06 | 60.35 |
*All values in ₹ Crores
Coal India Company Metrics
Coal India Ltd has a market capitalization of ₹3,26,501 crore with a current price of ₹530 per share. The stock boasts a P/E ratio of 8.94, a book value of ₹134, and a dividend yield of 4.81%, reflecting strong financial performance and shareholder returns.
Market Cap: Coal India Ltd’s market capitalization stands at ₹3,26,501 crore, underscoring its substantial market presence and investor confidence.
Book Value: The book value per share is ₹134, indicating the net asset value attributed to each share. This value represents the company’s intrinsic worth and provides insight into its financial stability.
Face Value: The face value of Coal India shares is ₹10.0, representing the nominal value assigned to each share. It is used for accounting purposes and is not necessarily reflective of the stock’s market value or performance.
Turnover: Coal India has an asset turnover ratio of 0.62, reflecting the efficiency with which it utilizes its assets to generate revenue.
PE Ratio: The stock’s P/E ratio is 8.94, suggesting that the shares are trading at a relatively low price relative to its earnings. This low ratio may indicate potential value for investors or market undervaluation.
Debt: The company’s debt stands at ₹6,523 crore, with a debt-to-equity ratio of 0.08, indicating low leverage and strong financial health. This manageable debt level supports operational stability and financial flexibility.
ROE: Coal India’s return on equity (ROE) is 52.0%, demonstrating high profitability relative to shareholders’ equity. This strong ROE reflects effective management and substantial returns generated for investors.
EBITDA Margin: The EBITDA margin is 32.8%, showcasing the company’s ability to maintain profitability from its core operations. A high margin indicates effective cost control and operational efficiency.
Dividend Yield: Coal India offers a dividend yield of 4.81%, providing attractive returns to shareholders. This yield reflects the company’s commitment to sharing profits with investors and maintaining steady dividend payouts.
Coal India Stock Performance
The table shows Coal India Ltd’s return on investment: 21% over 5 years, 54% over 3 years, and 126% over 1 year. These figures highlight significant recent growth, reflecting strong short-term performance and solid returns over different investment horizons.
| Period | Return on Investment (%) |
| 5 Years | 21% |
| 3 Years | 54% |
| 1 Year | 126% |
Example:
If an investor invested ₹1,00,000 in Coal India Ltd five years ago, they would have seen a return of 21%, resulting in ₹1,21,000. This demonstrates moderate growth over the long term.
For a 3-year investment, ₹1,00,000 would have grown by 54%, reaching ₹1,54,000. This shows substantial returns over a mid-term period.
For the past year, a ₹1,00,000 investment would have yielded a remarkable 126% return, totalling ₹2,26,000. This highlights exceptional recent performance and significant short-term gains.
Coal India Peer Comparison
Coal India, with a market cap of ₹311,301.39 Crores, leads in return on capital employed (ROCE) at 115.78% and dividend yield at 4.81%. It outperforms competitors in profitability and shareholder returns despite moderate price returns.
| S.No. | Name | CMP Rs. | Mar Cap Rs.Cr. | PEG | 3mth return % | 1Yr return % | ROCE % | Div Yld % |
| 1 | Coal India | 504.7 | 311301.39 | 0.52 | 7.77 | 115.78 | 63.59 | 4.81 |
| 2 | Vedanta | 420.2 | 164178.45 | -2.2 | -2.97 | 79.57 | 20.91 | 6.88 |
| 3 | NMDC | 210.94 | 61779.67 | 2.18 | -20.4 | 77.71 | 31.92 | 2.6 |
| 4 | Lloyds Metals | 734.15 | 38311.26 | 0.21 | 7.49 | 21.85 | 78.27 | 0.13 |
| 5 | KIOCL | 415.4 | 25197.99 | -1.34 | 92.81 | -2.13 | 0 | |
| 6 | G M D C | 357.2 | 11355.83 | 1.46 | -12.68 | 103.07 | 13.78 | 3.1 |
| 7 | MOIL | 409 | 8319.6 | -2.56 | -6.49 | 86.55 | 16.48 | 0.79 |
Coal India Shareholding Pattern
The shareholding pattern of Coal India reveals a dominant promoter stake of 63.13% on June 24. Foreign Institutional Investors (FII) hold 8.39%, Domestic Institutional Investors (DII) have 23.15%, and retail and others constitute 5.32%, indicating stable ownership distribution and increasing institutional interest.
| Jun 2024 | Mar 2024 | Dec 2023 | Sept 2023 | |
| Promoters | 63.13 | 63.13 | 63.13 | 63.13 |
| FII | 8.39 | 8.41 | 8.59 | 7.8 |
| DII | 23.15 | 23.18 | 23.06 | 24.07 |
| Retail & others | 5.32 | 5.27 | 5.2 | 5.01 |
*All values in %
Coal India History
Coal India’s history dates back to 1774 when M/s Sumner and Heatly, under the East India Company, initiated coal mining in the Raniganj Coalfield. The industry saw modest growth until the steam locomotive era boosted production significantly.
Post-independence, the Indian government focused on coal industry development through planned initiatives, including the establishment of the National Coal Development Corporation (NCDC) in 1956. This marked the beginning of systematic and scientific coal mining practices in the country.
Nationalization of coal mines began in 1971 with coking coal mines, followed by non-coking coal mines in 1973. This aimed to address unscientific mining practices and poor labour conditions.
How To Invest In Coal India Ltd Share?
Investing in Coal India Ltd shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for Coal India Ltd shares and place your buy order.
Coal India Limited Fundamental Analysis – FAQs
Coal India Ltd’s fundamental analysis shows a market capitalization of ₹3,26,502 crore, a PE ratio of 8.94, a debt-to-equity ratio of 0.08, and a return on equity of 52.0%, indicating strong financial health and market value.
The market cap of Coal India Ltd as of August 12, 2024, is approximately ₹3,26.502 crore. This value reflects the company’s strong market position in the Indian energy industry.
Coal India Limited is a leading Indian state-owned coal mining company, responsible for the majority of coal production in the country. It supplies coal primarily for power generation and industrial use, playing a key role in India’s energy sector.
Coal India Limited is wholly owned by the Government of India. It operates under the Ministry of Coal and is a public-sector enterprise, with the central government holding a majority stake in the company.
The main shareholders of Coal India Limited are the Government of India, which holds a majority stake, and various institutional and retail investors. The government remains the principal owner, significantly influencing company decisions and policies.
Coal India operates in the mining industry, specifically focusing on coal extraction and production. It is a key player in the energy sector, supplying coal for power generation and industrial processes, primarily within India.
To invest in Coal India Ltd shares, open a demat and trading account with a stockbroker, then place buy orders for the shares through your trading platform. Ensure you research the company’s financials and market conditions before investing.
Determining if Coal India is overvalued or undervalued depends on comparing its current valuation metrics, such as the PE ratio and market price, to industry peers and historical data. Analyzing financial performance and market trends can provide insights into its valuation.
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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
