COALINDIA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.5
| Stock Code | COALINDIA | Market Cap | 2,96,705 Cr. | Current Price | 481 ₹ | High / Low | 491 ₹ |
| Stock P/E | 15.7 | Book Value | 33.5 ₹ | Dividend Yield | 5.50 % | ROCE | 98.0 % |
| ROE | 97.4 % | Face Value | 10.0 ₹ | DMA 50 | 445 ₹ | DMA 200 | 418 ₹ |
| Chg in FII Hold | 0.16 % | Chg in DII Hold | 0.23 % | PAT Qtr | 5,534 Cr. | PAT Prev Qtr | 4,872 Cr. |
| RSI | 68.7 | MACD | 6.55 | Volume | 1,81,23,375 | Avg Vol 1Wk | 1,82,80,928 |
| Low price | 369 ₹ | High price | 491 ₹ | PEG Ratio | 1.86 | Debt to equity | 0.04 |
| 52w Index | 92.0 % | Qtr Profit Var | 75.7 % | EPS | 30.6 ₹ | Industry PE | 17.0 |
📊 Financials: COALINDIA demonstrates exceptional profitability with ROE at 97.4% and ROCE at 98.0%, among the highest in the industry. EPS of ₹30.6 supports strong earnings visibility. Quarterly PAT surged from ₹4,872 Cr. to ₹5,534 Cr. (+75.7%), reflecting robust growth. Debt-to-equity at 0.04 highlights a virtually debt-free balance sheet, strengthening financial stability.
💹 Valuation: The stock trades at a P/E of 15.7, slightly below the industry average of 17.0, suggesting mild undervaluation. Book value of ₹33.5 results in a high P/B of ~14.4, expensive relative to assets but justified by profitability. PEG ratio of 1.86 indicates premium valuation relative to growth. Intrinsic value appears supportive for accumulation near DMA levels.
🏢 Business Model: As India’s largest coal producer, COALINDIA benefits from scale, government backing, and critical role in power generation. Its competitive advantage lies in high efficiency, strong dividend yield (5.50%), and debt-free operations. Institutional sentiment improved, with FII holdings up (+0.16%) and DII holdings up (+0.23%).
🎯 Entry Zone: Attractive entry between ₹450–470, near DMA support levels. Long-term investors may hold for 3–5 years, with exit considerations if ROE falls below 80% or regulatory risks intensify.
Positive
- Exceptional ROCE (98.0%) and ROE (97.4%).
- Debt-to-equity ratio of 0.04, virtually debt-free.
- Dividend yield of 5.50% provides strong income support.
- Quarterly PAT growth of 75.7% highlights operational strength.
- EPS of ₹30.6 supports earnings visibility.
- Institutional holdings increased (FII +0.16%, DII +0.23%).
Limitation
- P/B ratio (~14.4) indicates expensive valuation relative to assets.
- PEG ratio of 1.86 suggests premium valuation.
- RSI at 68.7 indicates near overbought levels.
- High dependence on coal demand, which is cyclical and policy-sensitive.
Company Negative News
- Concerns around sustainability and environmental regulations may impact long-term growth prospects.
Company Positive News
- Strong quarterly profit surge and improved institutional holdings.
- High dividend payouts highlight operational strength and investor confidence.
Industry
- Coal and energy sector remains critical for India’s power generation.
- Industry PE at 17.0 suggests COALINDIA trades at a slight discount.
- Sector faces gradual transition pressures toward renewable energy.
Conclusion
✅ COALINDIA is a fundamentally strong company with exceptional profitability, high dividend yield, and low debt. Entry near ₹450–470 offers safety, while holding for 3–5 years could yield strong returns if demand sustains and regulatory risks are managed effectively. Partial profit booking near ₹485–490 resistance is prudent for short-term investors.