COALINDIA - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 4.6

📈 Positive

• 💰 Exceptional return metrics — ROCE at 96.6% and ROE at 96.1% reflect outstanding capital efficiency.
• 📉 Low P/E of 11.3 compared to industry average of 14.8 suggests undervaluation.
• 💸 High dividend yield of 6.92% offers attractive passive income for long-term investors.
• 📊 Quarterly PAT surged to ₹8,342 Cr. from ₹116 Cr., indicating strong operational performance.
• 📈 PEG ratio of 0.76 supports valuation attractiveness relative to growth.
• 📉 Debt-to-equity ratio of 0.03 ensures financial stability and low leverage risk.

⚠️ Limitation

• 📉 Book value of ₹32.4 is significantly lower than market price, indicating premium pricing.
• 📉 MACD at 0.50 and RSI at 49.2 suggest neutral technical momentum.
• 📉 Trading near DMA50 and DMA200 (₹388 and ₹394), indicating consolidation phase.

📰 Company Negative News

• 📉 FII holding declined by 0.20%, showing slight foreign investor caution.
• 📉 Stock down 35.8% from 52-week high, reflecting market skepticism or sectoral pressure.

🌟 Company Positive News

• 📈 DII holding increased by 0.14%, indicating domestic institutional support.
• 📈 Volume above 1-week average suggests rising investor interest and potential accumulation.

⛏️ Industry

• ⛏️ COALINDIA operates in the coal mining and energy sector, benefiting from industrial demand and government contracts.
• 📊 Industry P/E of 14.8 reflects moderate growth expectations and cyclical exposure to energy pricing and regulations.

🧭 Conclusion

• 📌 Suggested entry zone: ₹370–₹385, near support and below DMA levels for better margin of safety.
• 🕰️ Long-term holding favorable due to strong fundamentals, high dividend yield, and dominant market position.
• ⚖️ Monitor regulatory trends and global energy transition impacts on coal demand.