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COALINDIA - Swing Trade Analysis with AI Signals

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Rating: 4.5

Last Updated Time : 05 Feb 26, 02:16 am

Swing Trade Rating: 4.5

Stock Code COALINDIA Market Cap 2,67,365 Cr. Current Price 435 ₹ High / Low 462 ₹
Stock P/E 12.6 Book Value 32.4 ₹ Dividend Yield 6.09 % ROCE 96.6 %
ROE 96.1 % Face Value 10.0 ₹ DMA 50 412 ₹ DMA 200 399 ₹
Chg in FII Hold 0.26 % Chg in DII Hold -0.27 % PAT Qtr 8,342 Cr. PAT Prev Qtr 116 Cr.
RSI 56.5 MACD 6.98 Volume 1,29,26,242 Avg Vol 1Wk 1,24,81,691
Low price 349 ₹ High price 462 ₹ PEG Ratio 0.84 Debt to equity 0.03
52w Index 76.1 % Qtr Profit Var 102 % EPS 34.5 ₹ Industry PE 18.8

📊 Based on the given parameters, COALINDIA is a strong candidate for swing trading. The stock is trading at 435 ₹, close to its 52-week high of 462 ₹, showing strong momentum. Technical indicators (RSI 56.5, MACD positive) suggest bullish sentiment. The optimal entry price would be near the 50 DMA at 412 ₹ for better risk-reward. If already holding, consider exiting around 455–462 ₹, as this is a resistance zone near the 52-week high.

✅ Positive

  • Exceptional ROCE (96.6%) and ROE (96.1%), reflecting strong operational efficiency.
  • Dividend yield of 6.09% provides attractive income support.
  • Quarterly PAT surged to 8,342 Cr. from 116 Cr., showing massive profit growth.
  • EPS of 34.5 ₹ with P/E of 12.6, lower than industry average of 18.8, indicating undervaluation.
  • PEG ratio of 0.84 suggests reasonable valuation relative to growth.
  • FII holdings increased slightly, showing foreign investor confidence.

⚠️ Limitation

  • Stock is trading close to its 52-week high, limiting immediate upside.
  • DII holdings decreased (-0.27%), showing reduced domestic institutional interest.
  • Book value of 32.4 ₹ is low compared to current price, indicating premium valuation.

📉 Company Negative News

  • No major negative news reported recently, but dependence on coal sector exposes company to regulatory and environmental risks.

📈 Company Positive News

  • Strong quarterly profit growth and consistent dividend payouts.
  • Operational efficiency reflected in high ROCE and ROE.

🏭 Industry

  • Coal sector remains critical for India’s energy needs, though long-term transition to renewables poses challenges.
  • Industry P/E of 18.8 suggests COALINDIA is trading at a discount, offering valuation comfort.

🔎 Conclusion

COALINDIA is a strong swing trade candidate with robust fundamentals, high dividend yield, and strong profitability. Entry near 412 ₹ (50 DMA) offers better risk-adjusted returns. Exit should be considered around 455–462 ₹ if already holding, as this is a resistance zone. While short-term outlook is bullish, long-term risks from sectoral dependence on coal remain.

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