Maharatna PSU Stock to Buy: It is advisable to buy the stock of Maharatna government company Coal India (NSE: COALINDIA) from a long-term perspective.
Brokerage firm has advised to invest in shares from the perspective of the next 12 months. The brokerage says that the company’s performance has been strong in FY 2024 and the growth outlook looks better in the future also.
Shareholders of this stock have received more than 100 percent returns in a year.
Why Is Brokerage Bullish On Coal India?
The brokerage says the long-term outlook for Coal India looks better. It is anticipated that the company will expand because of the high demand for energy in the sector.
Coal’s share in India’s energy basket is 50 percent. Also, about 70 percent of the electricity requirement is met through coal.
In such a situation, it is the primary source of energy in the country. Demand may reach 1.5 billion tonnes by 2030. Coal India will directly benefit from this.
On the other hand, Coal India achieved its highest production volume of 774 MT in FY24. The government has set a target of 24×7 power supply by 2025.
In light of this is the case, Coal India has set the goal of achieving 1000MT of production in FY26E.
Coal India’s production may grow at 11% CAGR during FY23-26E. By FY26E it could be 950 MT.
Coal India: Shares Will Touch ₹523 In 12 Months
Brokerage house has advised to buy on Coal India. In addition, within the context of 12 months, the target price for shares was fixed at Rs.523.
The share closed at Rs 447.05 on April 5, 2024. This way, the price could jump by 23 percent above the price at present.
There was pressure on the shares on Friday. The stock remained trading flat throughout the session. Maharatna PSU Stocks have increased by over 100 percent in the last year.
The return of the stock in 6 months is around 55 percent. So far this year, the stock has risen by about 18 percent.
About Coal India Ltd Company
Coal India Ltd. is an Indian-based coal mining corporation. Coal India operates through affiliates in the 83 mining regions which are spread across eight states of India.
The Company operates 322 mines 138 underground, 171 opencast, and thirteen mixed mines. The Company also runs other establishments such as hospitals, workshops, and other facilities.
The Company operates 21 training institutes and Vocational Training Centers with 76. The company operates the Indian Institute of Coal Management (IICM), a corporate training institute located in India.
IICM offers multi-disciplinary courses. It owns 11 wholly-owned subsidiary companies, which include Eastern Coalfields Limited, Bharat Coking Coal Limited Central Coalfields Limited,
Western Coalfields Limited, South Eastern Coalfields Limited, Northern Coalfields Limited, Mahanadi Coalfields Limited, Central Mine Planning & Design Institute Limited, CIL Navi Karniya Uja Limited, CIL Solar PV Limited, and Coal India Africana Limitada.
Fundamental Analysis of Coal India Ltd
| Market Cap | ₹ 2,75,443 Cr. |
| Current Price | ₹ 447.05 |
| 52-wk High | ₹ 488 |
| 52-wk Low | ₹ 220 |
| Stock P/E | 9.39 |
| Book Value | ₹ 113 |
| Dividend | 5.43 % |
| ROCE | 70.5 % |
| ROE | 56.0 % |
| Face Value | ₹ 10.0 |
| P/B Value | 3.95 |
| OPM | 25.8 % |
| EPS | ₹ 47.7 |
| Debt | ₹ 6,313 Cr. |
| Debt to Equity | 0.09 |
Coal India Ltd Share Price Target 2024 To 2030
| Year | 1st Target | 2nd Target |
| 2024 | ₹ 450 | ₹ 528 |
| 2025 | ₹ 530 | ₹ 555 |
| 2026 | ₹ 560 | ₹ 587 |
| 2027 | ₹ 590 | ₹ 612 |
| 2028 | ₹ 622 | ₹ 681 |
| 2029 | ₹ 700 | ₹ 722 |
| 2030 | ₹ 731 | ₹ 750 |
Coal India Shareholding Pattern
| Promoters Holding | |
| Mar 2023 | 66.13% |
| June 2023 | 66.13% |
| Sept 2023 | 63.13% |
| Dec 2023 | 63.13% |
| Mar 2024 | 63.13% |
| FII Holding | |
| Mar 2023 | 7.84% |
| June 2023 | 9.30% |
| Sept 2023 | 7.80% |
| Dec 2023 | 8.59% |
| Mar 2024 | 8.41% |
| DII Holding | |
| Mar 2023 | 21.05% |
| June 2023 | 22.30% |
| Sept 2023 | 24.07% |
| Dec 2023 | 23.06% |
| Mar 2024 | 23.18% |
| Govt. Holding | |
| Mar 2023 | 0.09% |
| June 2023 | 0.10% |
| Sept 2023 | 0.10% |
| Dec 2023 | 0.10% |
| Mar 2024 | 0.11% |
| Public Holding | |
| Mar 2023 | 4.90% |
| June 2023 | 5.18% |
| Sept 2023 | 4.91% |
| Dec 2023 | 5.10% |
| Mar 2024 | 5.16% |
Coal India Ltd Share: Last 5 Years’ Financial Condition
To better understand how the market is performing, let’s look at the outlook of this share in the previous years.
However, investors should be aware of the risks and the market conditions before making any investment decision.
Last 5 Years’ Sales:
| 2019 | ₹ 99,586 Cr |
| 2020 | ₹ 96,080 Cr |
| 2021 | ₹ 90,026 Cr |
| 2022 | ₹ 109,715 Cr |
| 2023 | ₹ 143,066 Cr |
Last 5 Years’ Net Profit:
| 2019 | ₹ 17,464 Cr |
| 2020 | ₹ 16,700 Cr |
| 2021 | ₹ 12,702 Cr |
| 2022 | ₹ 17,378 Cr |
| 2023 | ₹ 29,376 Cr |
Last 5 Years’ Debt-To-Equity Ratio:
| 2019 | 0.08 |
| 2020 | 0.2 |
| 2021 | 0.16 |
| 2022 | 0.08 |
| 2023 | 0.07 |
Last 10 Years’ Profit Growth:
| 10 Years: | 5% |
| 5 Years: | 32% |
| 3 Years: | 19% |
| Current Year: | 0% |
Last 10 years’ Return on Equity (ROE):
| 10 Years: | 43% |
| 5 Years: | 52% |
| 3 Years: | 47% |
| Last Year: | 56% |
Sales Growth Over 10 Years:
| 10 Years: | 7% |
| 5 Years: | 10% |
| 3 Years: | 13% |
| Current Year: | 8% |
Conclusion
This article is a complete guide about Coal India Share.
These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
Also, We have talked in detail about the share’s future prospects and growth potential.
Hopefully, these informations will help you in your further investment.
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