Coal India Ltd.
Value Pick : Best share to buy today
Key Market Metrics
Market Cap
₹2,31,842 Cr
Current Price
₹376
Dividend Yield
6.78%
P/E Ratio
6.43
ROCE
63.6%
ROE
52.0%
Book Value
₹156/share
Promoter Holding
63.1%
Financial Performance
H1 FY 2024-25 Highlights
- Net Sales: ₹60,441.43 Cr (YoY: ↓ 4.1%)
- PAT: ₹17,218.35 Cr (YoY: ↓ 7.2%)
- Average Realization Per Ton: ₹1,622.28 (YoY: ↓ 5.8%)
- Raw Coal Production: 341.35 MT (YoY: ↑ 2.5%)
Dividend Policy
Coal India maintains a strong dividend payout policy, supported by:
- Current yield: 6.78%
- Low debt: ₹7,816 Cr
- Substantial reserves: ₹90,034 Cr
Growth Drivers & Expansion Plans
Production Capacity
H1 FY 2024-25 production increased by 2.5% YoY to 341.35 MT, with targeted 5-7% YoY growth for FY 2025.
E-Auction Performance
- Volume growth: 19.9% YoY to 38.28 MT
- Current realization: ₹2,434 per ton
- Previous year: ₹3,294 per ton
Renewable Energy Initiatives
Targeting 3 GW of solar capacity by FY 2028, supporting India’s energy transition goals.
Capital Expenditure
H1 FY 2024-25 Capex: ₹6,800 Cr
Strategic Focus Areas:
- Mechanized Mining Enhancement
- Rail Infrastructure Development
- Logistics Optimization
Competitive Landscape
Market dominance with over 80% of India’s coal production, facing evolving challenges:
- Commercial Mining Reforms
- Import Competition
- Renewable Energy Transition
Risk Assessment
Regulatory Risks
- Renewable energy policy shifts
- Environmental compliance costs
Operational Risks
- Project execution delays
- Transportation inefficiencies
Market Risks
- Demand-supply volatility
- Global economic impacts
Valuation & Investment Thesis
Valuation Metrics
- Current P/E: 6.43
- Fair Value Range: ₹450-480
Investment Merits
- High dividend yield with strong ROCE
- Strategic growth initiatives
- Dominant market position
Conclusion
Coal India Ltd. presents a compelling investment opportunity, combining steady income through high dividends with operational excellence. While facing industry transitions and regulatory challenges, the company’s market position and strategic initiatives provide resilience.
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