⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
COALINDIA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.3
| Stock Code | COALINDIA | Market Cap | 2,80,464 Cr. | Current Price | 455 ₹ | High / Low | 476 ₹ |
| Stock P/E | 17.0 | Book Value | 32.4 ₹ | Dividend Yield | 5.82 % | ROCE | 96.6 % |
| ROE | 96.1 % | Face Value | 10.0 ₹ | DMA 50 | 431 ₹ | DMA 200 | 408 ₹ |
| Chg in FII Hold | 0.26 % | Chg in DII Hold | -0.27 % | PAT Qtr | 4,872 Cr. | PAT Prev Qtr | 8,342 Cr. |
| RSI | 58.2 | MACD | 9.57 | Volume | 97,54,785 | Avg Vol 1Wk | 1,63,60,108 |
| Low price | 350 ₹ | High price | 476 ₹ | PEG Ratio | 1.14 | Debt to equity | 0.03 |
| 52w Index | 83.3 % | Qtr Profit Var | -49.5 % | EPS | 26.7 ₹ | Industry PE | 15.2 |
📊 Financial Overview
- Revenue & Profitability: Quarterly PAT declined from 8,342 Cr. to 4,872 Cr., showing short-term weakness. EPS at 26.7 ₹ remains strong, reflecting solid earnings capacity.
- Margins & Returns: ROE at 96.1% and ROCE at 96.6% are exceptionally high, indicating outstanding efficiency and profitability.
- Debt Profile: Debt-to-equity ratio of 0.03 highlights a near debt-free balance sheet, ensuring financial stability.
- Cash Flow: Dividend yield of 5.82% provides strong shareholder returns, supported by consistent cash generation.
💹 Valuation Indicators
- P/E Ratio: 17.0 vs Industry PE of 15.2 → slightly overvalued relative to peers but justified by strong returns.
- P/B Ratio: Current Price 455 ₹ vs Book Value 32.4 ₹ → P/B ~14.0, expensive compared to book value.
- PEG Ratio: 1.14 → suggests fair valuation relative to growth prospects.
- Intrinsic Value: Moderately overvalued, but supported by strong dividend yield and efficiency metrics.
🏢 Business Model & Competitive Advantage
- Coal India operates as the largest coal producer in India, supplying to power, steel, and industrial sectors.
- Competitive advantage lies in scale, government backing, and monopoly-like position in coal mining.
- Debt-free structure and exceptional ROE/ROCE provide resilience and efficiency.
📈 Technical & Entry Zone
- Stock trading at 455 ₹, above 50 DMA (431 ₹) and 200 DMA (408 ₹), showing bullish momentum.
- RSI at 58.2 indicates neutral-to-slightly overbought territory; MACD positive suggests short-term strength.
- Entry Zone: Attractive between 440–455 ₹ for accumulation, with long-term holding potential.
✅ Positive
- Exceptional ROE (96.1%) and ROCE (96.6%).
- Debt-free balance sheet ensures financial stability.
- Strong dividend yield (5.82%) supports shareholder returns.
- Increase in FII holdings (+0.26%) signals foreign investor confidence.
⚠️ Limitation
- Quarterly PAT decline (-49.5%) shows short-term weakness.
- P/B ratio (~14.0) indicates premium valuation compared to book value.
- DII holdings decreased (-0.27%), reflecting cautious domestic sentiment.
📉 Company Negative News
- No major recent negative news, but profit decline and reduced DII holdings raise caution.
📈 Company Positive News
- Strong dividend yield and efficiency metrics reinforce long-term strength.
- Increase in FII holdings (+0.26%) shows foreign institutional confidence.
🏭 Industry
- Coal sector benefits from India’s energy demand and industrial growth.
- Industry PE at 15.2 indicates moderate valuations compared to COALINDIA’s slight premium.
- Sector faces long-term challenges from renewable energy transition and environmental regulations.
🔮 Conclusion
- COALINDIA shows strong fundamentals with exceptional efficiency, debt-free status, and high dividend yield.
- Valuation is slightly stretched, and short-term profit decline is a concern, but long-term prospects remain positive given India’s energy demand.
- Recommendation: Accumulate in the 440–455 ₹ range for long-term holding, focusing on dividend yield and energy sector demand.