COALINDIA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.5
| Stock Code | COALINDIA | Market Cap | 2,81,298 Cr. | Current Price | 456 ₹ | High / Low | 491 ₹ |
| Stock P/E | 14.9 | Book Value | 33.5 ₹ | Dividend Yield | 5.80 % | ROCE | 98.0 % |
| ROE | 97.4 % | Face Value | 10.0 ₹ | DMA 50 | 453 ₹ | DMA 200 | 425 ₹ |
| Chg in FII Hold | 0.16 % | Chg in DII Hold | 0.23 % | PAT Qtr | 5,534 Cr. | PAT Prev Qtr | 4,872 Cr. |
| RSI | 48.5 | MACD | 1.49 | Volume | 94,87,564 | Avg Vol 1Wk | 73,36,068 |
| Low price | 369 ₹ | High price | 491 ₹ | PEG Ratio | 1.77 | Debt to equity | 0.04 |
| 52w Index | 71.6 % | Qtr Profit Var | 75.7 % | EPS | 30.6 ₹ | Industry PE | 16.2 |
📊 Financials: COALINDIA has a market cap of 2,81,298 Cr. with quarterly PAT at 5,534 Cr., up from 4,872 Cr. (+75.7%). ROE at 97.4% and ROCE at 98.0% are exceptionally strong, reflecting outstanding efficiency and profitability. Debt-to-equity at 0.04 highlights a near debt-free balance sheet. EPS of 30.6 ₹ supports earnings visibility, with robust cash flows.
💹 Valuation: The stock trades at a P/E of 14.9, slightly below the industry average of 16.2, suggesting undervaluation. P/B ratio is ~13.6 (456/33.5), reflecting premium pricing relative to book value. PEG ratio of 1.77 indicates growth is moderately priced in. Intrinsic value appears higher than current price, offering margin of safety.
🏢 Business Model: COALINDIA operates as the largest coal producer in India, benefiting from government backing and scale. Its competitive advantage lies in monopoly-like positioning, strong cash flows, and high dividend payouts. However, long-term sustainability is challenged by global energy transition trends.
📈 Entry Zone: With RSI at 48.5 (neutral), MACD positive, and price near DMA 50 (453 ₹) and DMA 200 (425 ₹), accumulation around 440–460 ₹ looks favorable. Long-term holding is justified given strong fundamentals, dividend yield, and undervaluation, though investors should monitor regulatory and environmental risks.
Positive
- 📌 Exceptional ROE of 97.4% and ROCE of 98.0%.
- 📌 Strong PAT growth (+75.7% QoQ).
- 📌 Debt-to-equity of 0.04 indicates near debt-free status.
- 📌 Dividend yield of 5.80% adds strong income appeal.
Limitation
- ⚠️ P/B ratio of ~13.6 indicates expensive valuation relative to book value.
- ⚠️ PEG ratio of 1.77 suggests growth is moderately priced in.
- ⚠️ Long-term sustainability challenged by global energy transition.
Company Negative News
- ❌ Environmental concerns and regulatory pressures on coal usage.
Company Positive News
- ✅ Increase in FII holdings (+0.16%) and DII holdings (+0.23%).
- ✅ Strong dividend yield and robust quarterly profit growth.
Industry
- 🏦 Coal sector benefits from strong domestic demand and government support.
- 🏦 Industry P/E at 16.2 suggests COALINDIA trades at a slight discount.
Conclusion
🔑 COALINDIA is fundamentally strong with exceptional return metrics, debt-free operations, and high dividend yield. Despite valuation premiums on book value and long-term sustainability concerns, entry around 440–460 ₹ offers a good margin of safety. The company remains a resilient player in India’s energy sector, making it attractive for long-term investors seeking income and stability.
For deeper insights, you could explore a peer comparison or an energy sector outlook to see how COALINDIA stacks up against competitors.