{"id":53648,"date":"2025-03-20T11:29:48","date_gmt":"2025-03-20T05:59:48","guid":{"rendered":"https:\/\/www.equentis.com\/blog\/?p=53648"},"modified":"2025-03-20T11:30:37","modified_gmt":"2025-03-20T06:00:37","slug":"coal-india-share-price-all-you-need-to-know","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/coal-india-share-price-all-you-need-to-know\/","title":{"rendered":"Coal India Share Price: All You Need to Know"},"content":{"rendered":"
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Coal India\u2019s unmatched strategic relevance in securing India\u2019s energy requirement and supporting economic growth makes it an attractive investment opportunity. And, after the recent market correction and sharp drop in Coal India share price, does it still offer value at current levels. Let\u2019s check out. <\/p>\n\n\n\n

Overview of Coal India<\/h2>\n\n\n\n

Coal India is a state-owned world\u2019s largest coal mining company. It produced 774 MT of coal in FY24, accounting for nearly 40% of primary commercial energy requirement. <\/p>\n\n\n\n

The company primarily operates through the long term coal supply contracts with companies and auctions in the free market. Due to its strong financial position and established track record of being profitable, the government has granted it the status of \u201cMaharatna\u201d enterprise. <\/p>\n\n\n\n

Because of the Maharatna status, it enjoys greater financial autonomy, operational freedom, and strategic flexibility. <\/p>\n\n\n\n

Coal India Management Team<\/h2>\n\n\n\n

Shri PM Prasad<\/strong> is the Chairman & Managing Director of Coal India. He has been with the company since 1984 and joined as an executive trainee with Western Coalfields Limited. He did M. Tech. in \u2018Open-Cast Mining\u2019 from Indian School of Mines (IIT- ISM), Dhanbad.<\/p>\n\n\n\n

Shri Vinay Ranjan<\/strong> is the Director (Personnel & Industrial Relations) with extensive experience in Human Resource affairs including talent management, performance management, employee engagement, etc. <\/p>\n\n\n\n

Shri Debasish Nanda<\/strong> is the Director (Business Development) and has joined the company in July 2022. Prior to this, he was working as Executive Director (Gas) in Indian Oil Corporation, where he joined the company in 1988 as management trainee. Currently at CIL, Shri Nanda is responsible for leading the diversification portfolio at CIL including forward integration.<\/p>\n\n\n\n

Shri Mukesh Choudhary<\/strong> is the Director (Marketing) from December 2022. Prior to joining CIL,  he was Deputy Director General, Department of Defence Production at the Ministry of Defence. Career wise, he is an Officer of Indian Ordnance Factory Services (IOFS) 1996 batch and Mechanical Engineering (Honours) graduate from Engineering College Kota. He also holds a Master of Financial Analysis (MFA) degree and a MBA degree.<\/p>\n\n\n\n

Shri Mukesh Agrawal<\/strong> is the Director (Finance) and joined the company in Feb 2024. He is science graduate from University of Allahabad and a Member of the Institute of Cost Accountants of India. Earlier, he has worked with public sectors like ITI Limited, IRCON, NLC India. <\/p>\n\n\n\n

Coal India Shareholding Pattern<\/h2>\n\n\n\n
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In the domestic institution segment, Mutual Funds<\/a> hold 10.81% and LIC holds 9.74% stake in the company.<\/p>\n\n\n\n

Coal India Financial Performance<\/h2>\n\n\n\n

Net Sales<\/h3>\n\n\n\n

In FY24, CIL reported 2.1% sales growth to \u20b91.30 lakh crore from \u20b91.27 lakh crore in FY23. <\/p>\n\n\n\n

And, in the first nine months of FY25- the company\u2019s sales declined by 3% to \u20b992,800 crore from \u20b996,962 crore, reported for 9MFY24 period. <\/p>\n\n\n\n

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EBITDA<\/h3>\n\n\n\n

In FY24, EBITDA growth was 8.5% to \u20b951,793 crore from \u20b947,722 crores in FY23. EBITDA Margin to net sales in FY24 was 39.74%. <\/p>\n\n\n\n

For the 9MFY25 period, the EBITDA Margin to Net Sales came in at 41.32%, from 40.61% recorded in the same period previous fiscal. <\/p>\n\n\n\n

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Net Profit<\/h3>\n\n\n\n

In FY24, CIL recorded a 17.7% rise in net profit to \u20b937,369 crores, from \u20b931,723 crores in FY23.<\/p>\n\n\n\n

And, in the first nine months of FY25, net profit declined by 11% to \u20b925,710 crores from \u20b928,839 crores reported in the same period last year. <\/p>\n\n\n\n

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The net profit margin to net sales of the company rose to 28.67% in FY24, from 24.86% in FY23 and has consistently improved over the last five years. <\/p>\n\n\n\n

Period<\/strong><\/td>FY20<\/strong><\/td>FY21<\/strong><\/td>FY22<\/strong><\/td>FY23<\/strong><\/td>FY24<\/strong><\/td><\/tr>
Net Profit Margin (%)<\/td>18.69<\/td>15.36 <\/td>17.28<\/td>24.86<\/td>28.67<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Key Financial Metrics<\/h3>\n\n\n\n

Current Ratio<\/strong>: At the end of December 2024, the current ratio of the company was 1.72 times, slightly increasing from 1.70 times recorded the previous year. <\/p>\n\n\n\n

Debt Equity Ratio: <\/strong>The company has negligible debt in its book. At the end of December 2024, the debt to equity ratio of the company was 0.09 times.<\/p>\n\n\n\n

Return on Capital Employed (ROCE<\/a>)<\/strong>: The metric shows how much the company is generating returns on equity and debt investment and is directly linked to the Coal India share price growth. In the last five years, CIL has improved its ROCE consistently from 16.14% in FY21 to 27.30% in FY24. <\/p>\n\n\n\n

Period<\/strong><\/td>FY20<\/strong><\/td>FY21<\/strong><\/td>FY22<\/strong><\/td>FY23<\/strong><\/td>FY24<\/strong><\/td><\/tr>
ROCE (%)<\/td>22.60<\/td>16.14<\/td>19.25<\/td>28.21<\/td>27.30<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Coal India Share Price Analysis<\/h2>\n\n\n\n

In the recent market correction, Coal India share price has witnessed a sharp drop. As of 7th March 2025, Coal India share price has declined by close to 22% in the last six months, from \u20b9485 to \u20b9381. <\/p>\n\n\n\n

It made an all-time high level of  \u20b9543.55 on 26th August 2024. <\/p>\n\n\n\n

However, despite the correction, Coal India share price has given returns of 19% annually in the last five years.<\/p>\n\n\n\n

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Source: TradingView<\/em><\/figcaption><\/figure>\n\n\n\n

<\/p>\n\n\n\n

Coal India has a consistent dividend paying track record. In the last three financial years, it paid \u20b917 in FY22, \u20b924.25 in FY23, \u20b925.50 in FY24. <\/p>\n\n\n\n

The dividend payout ratio for the last three financial years was 60.35%, 47.05% and 42.02% respectively. <\/p>\n\n\n\n

At current Coal India share price of \u20b9381, the dividend yield ratio is 6.7%.<\/p>\n\n\n\n

Coal India Share Price Valuation Score <\/h2>\n\n\n\n

Earning Per Share (EPS)<\/h3>\n\n\n\n

The following is the last five years Earnings Per Share of Coal India:<\/p>\n\n\n\n

Period<\/strong><\/td>FY20<\/strong><\/td>FY21<\/strong><\/td>FY22<\/strong><\/td>FY23<\/strong><\/td>FY24<\/strong><\/td>9MFY25<\/strong><\/td><\/tr>
EPS<\/a> (\u20b9)<\/td>27.12<\/td>20.61<\/td>28.17 <\/td>51.54<\/td>60.69<\/td>41.79<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

EPS of Coal India has increased from \u20b927 in FY20 to \u20b961 in FY24, which helped in the Coal India share price growth during the period. <\/p>\n\n\n\n

For the 9MFY25 period, the EPS came in at \u20b941.69, which is lower from \u20b946.78, recorded for the same period previous year. <\/p>\n\n\n\n

Know More:  <\/strong>SEBI <\/b><\/a>Registered Investment Advisory |  Stock Investment Advisory<\/a><\/strong><\/pre>\n\n\n\n
Price-to-Book VS Median Price-to-Book<\/h3>\n\n\n\n
At current Coal India share price of \u20b9381, the stock is trading at 2.4 times its book value and the 5 year median price-to-book value is 2.8, which indicates, the stock is trading at slight discount. <\/p>\n\n\n\n
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Source: Screener (As on 7th March 2025)<\/em><\/p>\n\n\n\n
Price-to-Equity VS Median PE<\/h3>\n\n\n\n
Coal India share price is trading at a PE of 6.83 and the 5 year median PE is 6.5, indicating it is neither trading at a discount or premium. <\/p>\n\n\n\n
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Source: Screener (As on 7th March 2025)<\/em><\/p>\n\n\n\n
Coal India Share Price Future Growth Potential <\/h2>\n\n\n\n
Let\u2019s first look at the operational metrics of Coal India. <\/p>\n\n\n\n
Flat Volume Growth in Coal India in FY25. The company has been consistently improving its coal production rate and has increased from 602 MT in FY20 to nearly 774 MT in FY24. <\/p>\n\n\n\n
However, the volume growth in FY25 looks subdued due to various operational challenges like inclement monsoon, rake unavailability for dispatch, and few technical challenges. For the full financial year, the company is expecting a production of 788 MT, revised from 838 MT set initially. <\/p>\n\n\n\n
Absence of volume growth can hit revenue and profitability growth metrics in the near term. <\/p>\n\n\n\n
Period<\/strong><\/td>FY20<\/strong><\/td>FY21<\/strong><\/td>FY22<\/strong><\/td>FY23<\/strong><\/td>FY24<\/strong><\/td>9MFY25<\/strong><\/td><\/tr>
Volume (MT)<\/td>602.13<\/td>596.22<\/td>622.63<\/td>703.20<\/td>773.64<\/td>543.36 (+2%)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
Coal India relies heavily on e-Auction to drive its revenue growth. Due to absence of strong demand and highest pit head inventory at 70 MT, auction prices have remained stable impacting earnings growth. <\/p>\n\n\n\n
Also, subdued demand from power sector due slow economic growth can also impact Coal India share price. <\/p>\n\n\n\n
Another major shift is happening is the drop in coal\u2019s share in India\u2019s power generation capacity. In the first quarter of 2024, the share of coal in India\u2019s power generation capacity dropped below 50%. This is the first drop since 1960, as the government is moving rapidly to increase India\u2019s renewable energy<\/a> capacity. <\/p>\n\n\n\n
According to IEA, global<\/a> coal demand is set to plateau through 2027 due to the massive expansion of renewables. And, India will also follow the trend. The global share of coal-fired power generation is expected to come down to 55% by 2030 and a complete phase-out by 2040. <\/p>\n\n\n\n
Diversification of Operations<\/h3>\n\n\n\n
The growth of renewable energy sources pose a significant challenge and growth of Coal India share price. To address the issue, the company has undertaken many diversification initiatives including:<\/p>\n\n\n\n