COALINDIA.NS
Coal India Ltd. (COALINDIA.NS) is a major player in the energy sector, boasting a significant market capitalization of ₹2798.804 billion, which underscores its dominant presence in the industry. The stock's Price-to-Earnings (P/E) ratio of 7.76 suggests that investors have moderately cautious expectations about its earnings relative to its stock price, potentially indicating an undervalued stock compared to market standards.
The Return on Equity (ROE) of 43.02% highlights that the company is effective in generating substantial returns for its shareholders, marking a strong profitability stance. Despite a low debt-to-equity ratio of 8.05, which suggests the company minimizes reliance on debt for financing, its financial structure seems stable.
A current ratio of 1.81 indicates Coal India's ability to cover its short-term liabilities, providing a comfortable liquidity position, while an operating margin of 24.64% highlights its capacity to maintain profitability in its day-to-day operations. The company’s robust free cash flow of ₹115.14 billion enhances its capability to invest in future developments and manage operations efficiently.
However, potential investors should be aware of certain challenges, such as a negative earnings growth rate of -7.4% and a revenue growth rate of -9%. These could suggest a trend of declining performance, possibly due to market pressures or operational inefficiencies.
On a positive note, the EBITDA margin of 35.61% indicates a robust operating profit structure, signifying effective management of earnings before interest, taxes, depreciation, and amortization. With institutional investors holding 25.11% of shares, there is a moderate level of confidence from external entities in the company's future prospects.
This overview provides an insightful look into Coal India's financial health and operational performance, offering valuable considerations for potential investors evaluating the stock for both its strengths and prospective risks.
Last Updated: January 14, 2025
| Metric | Value |
|---|---|
| Market Cap | 2308.56 B |
| P/E Ratio | 6.40 |
| ROE | 43.02 % |
| Debt to Equity | 8.053 |
| Operating Margin | 24.64 % |
| Free Cash Flow | 115.14 B |
| Institutional Holdings | 26.03 % |
| Revenue Growth | -9.00 % |
Coal India Limited's Competition Landscape:
- Domestic Coal Production: In the Indian market, competition is mainly from other domestic coal producers.
- International Coal Producers: Global players play a role mainly through imports to meet India's high coal demand.
Coal India Limited (CIL) maintains a predominant position in India's coal market, thanks to its large reserves, legacy operations, and government backing. While the entry of private players and reliance on coal imports present challenges, CIL’s established infrastructure and comprehensive market access remain its strongholds. Investors should consider the potential risks from regulatory changes and the global shift towards renewable energy sources. Nonetheless, India's current energy needs and economic growth continue to drive coal demand, benefiting Coal India's operations.
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