Digging Deeper: The Future Prospects of Coal India

The Ministry of Coal, Government of India, owns Coal India Limited (CIL), a major public sector organization in India. Headquartered in Kolkata, it is the world's biggest producer of coal controlled by the government. Coal India Limited ranks as India's ninth-largest employer with around two lakh employees.

PM Prasad, who is currently serving as the MD of CIL is effortlessly making sure that Coal India keeps setting standards in the coal mining sector with its innovative drilling methods and environmentally sustainable mining operations. 

Coal India Limited Financial Analysis

To analyze a company’s performance, studying the EBITDA margin can be helpful. It measures the company’s profitability by subtracting the manufacturing costs or other costs in the case of service-oriented firms.

EBITDA for  Coal India Limited rose by 51.66% to ₹43,368.53 Cr in 2023. Given the decreased prices, this represents a 10% rise over the previous financial year. Additionally, in 2023, the EBITDA margin grew by 20.36% to reach 31.37, exceeding the previous five years' average of 28.49. 

For more information regarding Coal India's growth, read the table mentioned below.

Category	March 2023	March 2022
Total Income From Operations	Rs 1950.51 cr	Rs 1131.92 cr
Net Profit	Rs 14802 cr	Rs 11201 cr
Basic Earnings Per Share	24.02	18.18

Coal India Limited Price Analysis

Coal India Limited has shown a stable upside growth curve. As of April ‘24 Coal India share price is trading at Rs 400+ currently as compared to Rs 213 a year ago which is 87% higher. Here is the coal India share price chart.

 

As of April 2024, the stock has now been trading at Rs 445. According to the latest financial reports submitted by Money Control, the current price-to-earnings ratio or TTM is 8.71 which was 4.6 in March 2023.

Should One Invest in Coal India Limited Stocks?

India's coal supply has improved recently, making it more suitable to meet the country's growing energy needs. 17 analysts have initiated coverage on Coal India. 5 analysts have given it a strong buy rating & 7 analysts have given it a buy rating. 1 analysts have given the stock a sell rating. According to money control, the stocks of Coal India have outperformed and are a strong buy. 

Investing in Coal India Limited equities ultimately comes down to your risk tolerance, financial objectives, and prognosis for the coal mining sector. Make sure to analyze the financial performance of the company and how it is expected to grow in the future.

The Bottom Line 

Coal India is a key player in the Indian coal mining industry, representing innovation, sustainability, and efficiency. A company's performance is reflected in its share price, which is impacted by a variety of variables, including financial performance and regulatory dynamics. As of March 2024, Coal India has performed exponentially well in the recent past and can be termed as a safe investment for investors. 

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