COALINDIA - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Fundamental Analysis: Coal India Ltd (COALINDIA) Fundamental Rating: 4.6

⛏️ Core Financials Review

Profit Performance

EPS: ₹57.4 ➜ very strong earnings capacity

PAT grew from ₹8,491 Cr to ₹9,593 Cr ➜ QoQ gain of 12.4%

Return Ratios

ROE: 38.8% | ROCE: 48.0% ➜ exceptionally high returns on capital

Balance Sheet Strength

Debt-to-equity: 0.09 ➜ virtually debt-free — strong fiscal prudence

Dividend Profile

Yield of 6.65% ➜ stellar passive income potential

💰 Valuation Insights

Indicator Value Interpretation

P/E Ratio 6.70 Significantly undervalued vs industry PE of 11.1

P/B Ratio ~2.38 (384 ₹ / 161 ₹) ➜ priced below intrinsic book strength

PEG Ratio 0.25 Extremely attractive — growth deeply undervalued

📉 Verdict: Strongly undervalued — PEG ratio far below 1 suggests multi-year upside if fundamentals hold.

🔋 Business Model & Strategic Positioning

India’s largest coal producer, powering ~70% of thermal energy generation.

Monopoly status in domestic market ensures pricing leverage.

Moats

Economies of scale

Government backing

Strategic relevance to national energy infrastructure

📊 Institutional Sentiment

FII ↑ 0.42% ➜ foreign accumulation underway

DII ↓ 0.69% ➜ domestic marginal trimming, possibly cyclical

📉 Technical Trend & Entry View

RSI: 45.4 ➜ neutral zone — not overbought or oversold

MACD: -2.03 ➜ mild bearish crossover — watch for stability

Price near DMA 50 & 200 ➜ trading sideways; potential base formation

✅ Suggested Entry Zone: ₹365–₹380 📌 Ideal for accumulation on dips or consolidation before next cycle

🧭 Long-Term Holding Strategy

Coal India suits investors looking for

High dividend yield + low volatility

Exposure to energy infrastructure with sovereign backing

Value investing themes with consistent cash flows

⚡ Despite ESG headwinds in the sector, Coal India’s fiscal discipline, earnings power, and critical role in India's grid make it a steady long-term compounder.

Want a comparison with NTPC, ONGC, or even green energy names like Adani Green for a broader energy-sector perspective? Just say the word.

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