NSEI:COALINDIA

Stock Analysis Report

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Executive Summary

Coal India Limited, together with its subsidiaries, produces and sells coal worldwide.


Snowflake Analysis

Excellent balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has Coal India's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: COALINDIA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

COALINDIA

5.2%

IN Oil and Gas

4.0%

IN Market


1 Year Return

-42.1%

COALINDIA

7.5%

IN Oil and Gas

-5.3%

IN Market

Return vs Industry: COALINDIA underperformed the Indian Oil and Gas industry which returned 10.9% over the past year.

Return vs Market: COALINDIA underperformed the Indian Market which returned -5.5% over the past year.


Shareholder returns

COALINDIAIndustryMarket
7 Day0%5.2%4.0%
30 Day-8.3%9.7%6.6%
90 Day-3.3%36.9%22.9%
1 Year-36.9%-42.1%12.0%7.5%-3.3%-5.3%
3 Year-36.4%-47.8%42.5%27.4%2.3%-2.6%
5 Year-56.4%-69.4%79.6%46.8%27.7%17.8%

Price Volatility Vs. Market

How volatile is Coal India's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Coal India undervalued compared to its fair value and its price relative to the market?

18.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: COALINDIA (₹132.85) is trading below our estimate of fair value (₹163.14)

Significantly Below Fair Value: COALINDIA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: COALINDIA is good value based on its PE Ratio (4.9x) compared to the Oil and Gas industry average (15.4x).

PE vs Market: COALINDIA is good value based on its PE Ratio (4.9x) compared to the Indian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: COALINDIA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: COALINDIA is overvalued based on its PB Ratio (2.5x) compared to the IN Oil and Gas industry average (1.1x).


Next Steps

Future Growth

How is Coal India forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

-2.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: COALINDIA's earnings are forecast to decline over the next 3 years (-2% per year).

Earnings vs Market: COALINDIA's earnings are forecast to decline over the next 3 years (-2% per year).

High Growth Earnings: COALINDIA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: COALINDIA's revenue (6.6% per year) is forecast to grow slower than the Indian market (7.2% per year).

High Growth Revenue: COALINDIA's revenue (6.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: COALINDIA's Return on Equity is forecast to be high in 3 years time (39.8%)


Next Steps

Past Performance

How has Coal India performed over the past 5 years?

5.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: COALINDIA has high quality earnings.

Growing Profit Margin: COALINDIA's current net profit margins (18.7%) are higher than last year (18.2%).


Past Earnings Growth Analysis

Earnings Trend: COALINDIA's earnings have grown by 5.6% per year over the past 5 years.

Accelerating Growth: COALINDIA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: COALINDIA had negative earnings growth (-4.3%) over the past year, making it difficult to compare to the Oil and Gas industry average (-12.3%).


Return on Equity

High ROE: COALINDIA's Return on Equity (51.3%) is considered outstanding.


Next Steps

Financial Health

How is Coal India's financial position?


Financial Position Analysis

Short Term Liabilities: COALINDIA's short term assets (₹835.1B) exceed its short term liabilities (₹484.6B).

Long Term Liabilities: COALINDIA's short term assets (₹835.1B) exceed its long term liabilities (₹690.1B).


Debt to Equity History and Analysis

Debt Level: COALINDIA's debt to equity ratio (19.7%) is considered satisfactory.

Reducing Debt: COALINDIA's debt to equity ratio has increased from 1% to 19.7% over the past 5 years.

Debt Coverage: COALINDIA's debt is well covered by operating cash flow (64.5%).

Interest Coverage: COALINDIA's interest payments on its debt are well covered by EBIT (36.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Coal India current dividend yield, its reliability and sustainability?

9.03%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: COALINDIA's dividend (9.03%) is higher than the bottom 25% of dividend payers in the Indian market (0.68%).

High Dividend: COALINDIA's dividend (9.03%) is in the top 25% of dividend payers in the Indian market (2.78%)


Stability and Growth of Payments

Stable Dividend: COALINDIA has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: COALINDIA's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.2%), COALINDIA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: COALINDIA's dividends in 3 years are forecast to be covered by earnings (75.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Pramod Agrarval

0.42

Tenure

Mr. Pramod Agrarval has been a Chairman & Managing Director of Coal India Limited since February 01, 2020. 


Leadership Team

NamePositionTenureCompensationOwnership
S Sarkar
CFO & GM of I/C1.75yrs₹6.14mno data
Binay Dayal
Technical Director & Director2.75yrs₹5.25mno data
M. Viswanathan
Chief Manager of Financeno data₹4.78m0.000010% 83.7k
Ram Srivastava
Director of Personnel & Industrial Relations and Director2.5yrs₹4.07mno data
Pramod Agrarval
Chairman & MD0.42yrno datano data
A. Karmakar
General Manager of Adminno datano datano data
Snehatosh Majumder
General Manager of Legalno datano datano data
Satyendra Tiwary
Director of Marketing & Director0.58yrno datano data
Bhagwan Pandey
Chief General Manager of Manpower & Industrial Relationsno datano datano data
Siba Majumder
Chief GM of Mining & TS to Chairmanno datano datano data

1.8yrs

Average Tenure

63yo

Average Age

Experienced Management: COALINDIA's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Binay Dayal
Technical Director & Director2.75yrs₹5.25mno data
Ram Srivastava
Director of Personnel & Industrial Relations and Director2.5yrs₹4.07mno data
Pramod Agrarval
Chairman & MD0.42yrno datano data
Satyendra Tiwary
Director of Marketing & Director0.58yrno datano data
Sanjiv Soni
Director of Finance & Whole time Director1yrno datano data
Vinod Thakral
Independent Director2.83yrs₹1.70mno data
Rajiv Mishra
Permanent Invitee4.67yrsno datano data
Shekhar Saran
Permanent Invitee4.5yrsno datano data
Bharatbhai Gajipara
Independent Director2.83yrs₹990.00kno data
Vinod Tiwari
Government Nominee Director0.58yrno datano data

2.6yrs

Average Tenure

59yo

Average Age

Experienced Board: COALINDIA's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Coal India Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Coal India Limited
  • Ticker: COALINDIA
  • Exchange: NSEI
  • Founded: 1973
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: ₹837.207b
  • Shares outstanding: 6.16b
  • Website: https://www.coalindia.in

Number of Employees


Location

  • Coal India Limited
  • Coal Bhawan
  • Premise No-04 MAR
  • Kolkata
  • West Bengal
  • 700156
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
COALINDIANSEI (National Stock Exchange of India)YesEquity SharesININRNov 2010
533278BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 2010

Biography

Coal India Limited, together with its subsidiaries, produces and sells coal worldwide. It offers coking coal primarily for use in steel making and metallurgical industries, and for hard coke manufacturing; and semi coking coal that is used as blend-able coal in steel making, merchant coke manufacturing, and other metallurgical industries. The company also provides non-coking coal for use as thermal grade coal for power generation, as well as for cement, fertilizer, glass, ceramic, paper, chemical, and brick manufacturing, and other heating purposes. In addition, it offers beneficiated and washed non-coking coal for use in power generation; beneficiated non-coking coal, which is used in cement, sponge iron, and other industrial plants; and middling products for use in power generation, domestic fuel plants, brick manufacturing units, cement plants, industrial plants, etc. Further, the company provides rejects for use in fluidized bed combustion boilers for power generation, road repairs, briquette making, land filling, etc.; CIL/LTC coke that is used in furnaces and kilns of industrial units, as well as for use as domestic fuel by halwais, hotels, etc.; and coal/coke fines that are used in industrial furnaces, and for domestic purposes. Additionally, it offers tar/heavy oil/light oil/soft pitches, which are used in furnaces and boilers of industrial plants, as well as power houses, oil, dye, pharmaceutical industries, etc. The company was formerly known as Coal Mines Authority Limited and changed its name to Coal India Limited in November 1975. Coal India Limited was incorporated in 1973 and is headquartered in Kolkata, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/07 12:36
End of Day Share Price2020/07/07 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.