COALINDIA - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.6

📊 Core Financials

Earnings Strength: EPS of ₹27.7 and a quarterly PAT of ₹116 Cr (down from ₹3,149 Cr) suggest a temporary dip, but annual net profit remains strong at ₹34,839.84 Cr

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Return Metrics: ROCE at 96.6% and ROE at 96.1% are exceptional—among the highest in the Indian market.

Debt Profile: Debt-to-equity of 0.00 — completely debt-free, which enhances financial resilience and cash flow flexibility.

Cash Flow: Strong operating cash flows are implied by high profitability and zero debt.

💰 Valuation Indicators

Metric Value Insight

P/E Ratio 14.2 Slightly above industry PE (11.4), still attractive

P/B Ratio ~13.4 High premium over book value

PEG Ratio 0.95 Fairly valued relative to growth

Dividend Yield 6.74% Very attractive for income-focused investors

Valuation is compelling, especially given the high dividend yield and strong earnings.

🏭 Business Model & Competitive Advantage

Coal India Ltd. is the world’s largest coal producer and a key supplier to India’s power sector. Its strengths include

Monopoly-like scale and government backing

Strong infrastructure and logistics network

High dividend payout policy

Strategic importance in India’s energy security

Despite ESG headwinds, coal demand remains robust in India, and Coal India continues to post strong financials with annual revenue of ₹143,368.92 Cr and EPS of ₹57.37

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📈 Technical & Sentiment Indicators

RSI: 56.5 – Neutral zone, no strong momentum.

MACD: 3.70 – Mild bullish crossover.

Volume Surge – Above weekly average, indicating rising interest.

DMA 50 & 200: Current price is near both, suggesting consolidation.

💡 Investment Strategy

🔽 Entry Zone

Ideal Buy Range: ₹370–₹385, near DMA 50 and below current price.

Current Price ₹393: Slightly above ideal entry, but still undervalued fundamentally.

🕰️ Long-Term Holding

Strong Hold or Accumulate: Debt-free, high ROE/ROCE, and generous dividends make it a solid long-term compounder.

Monitor ESG Trends & Regulatory Shifts: Coal remains a politically sensitive sector, but demand fundamentals are intact.

You can explore Coal India’s live performance and technical indicators or review its financial trajectory and EPS growth for deeper insights. Let me know if you'd like a peer comparison with NTPC or a forecast model for 2030.

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