Coal India
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Coal India is navigating a complex landscape characterized by rising thermal power demand and strategic diversification into renewable energy and coal gasification. Management's optimistic outlook hinges on achieving production targets of 815 MT and offtake of 850 MT for FY27, supported by strong e-auction premiums. However, the sustainability of these premiums is contingent on supply recovery post-monsoon. Vista's forecast reflects moderated revenue growth, stable margins, and a fair valuation, aligning with management's focus on operational efficiency and diversification. The company's strong liquidity and commitment to dividends provide a stable outlook, despite near-term margin pressures from rising operational costs. Over the next 12-24 months, key opportunities include the successful execution of diversification projects and potential IPOs of subsidiaries, while watchpoints include execution risks and competitive pressures from renewables. Overall, Coal India's strategic initiatives position it for long-term growth, albeit with challenges from cost inflation and market dynamics
Why We Like This Stock
- Strong e-auction premiums indicate robust demand and pricing power
- Strategic diversification into renewable energy and coal gasification could open new revenue streams
- Management's focus on operational efficiency and production targets supports long-term growth potential
Things To Watch Out For
- Rising operational costs are pressuring margins and could impact profitability
- Execution risks associated with large-scale diversification projects may hinder progress
- Increased competition from renewable energy sources poses a threat to market share
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 144,762 | 143,369 | 168,400 | 173,689 | 182,915 |
| Profit Before Tax (Cr.) | 48,794 | 46,967 | 41,923 | 39,148 | 43,650 |
| PBT Margin | 33.7% | 32.8% | 24.9% | 22.5% | 23.9% |
| Net Profit (Cr.) | 37,222 | 35,868 | 30,952 | 28,859 | 32,152 |
| Earnings Per Share | 60.5 | 58.3 | 50.3 | 46.8 | 52.2 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| BofA | ▲ Buy | 490 | 24-Sep-2026 |
| Morgan Stanley | ▲ Overweight | 480 | 22-Sep-2026 |
| Citigroup | ▲ Buy | 465 | 03-Sep-2026 |
| BNP Paribas | ► Neutral | 425 | 02-Sep-2026 |
| HSBC | ► Hold | 440 | 02-Sep-2026 |
| Nuvama | ► Hold | 454 | 02-Sep-2026 |
| UBS | ▲ Buy | 550 | 02-Sep-2026 |
| Anand Rathi | ► Neutral | 520 | 29-Jul-2026 |
| JPMorgan | ► Neutral | 430 | 28-Jul-2026 |
| Jeffries | ▲ Buy | 500 | 28-Jul-2026 |
| Moneycontrol | ▲ Overweight | nan | 28-Jul-2026 |
| Motilal Oswal | ▲ Buy | 510 | 28-Jul-2026 |
| Prabhudas Liladhar | ► Accumulate | 472 | 28-Jul-2026 |
| Axis Securities | ▲ Buy | 485 | 01-Jul-2026 |
| Mirae Asset | ▲ Buy | 530 | 16-Jun-2026 |
| JMFinancials | ► Hold | 515 | 09-Jun-2026 |
| CLSA | ▼ Reduce | 385 | 08-May-2026 |
| HDFC Securities | ► Add | 500 | 29-Apr-2026 |
| Elara Capital | ► Accumulate | 522 | 28-Apr-2026 |
| Macguire | ► Hold | 445 | 10-Apr-2026 |
Company Overview
Show Company Profile
Coal India Limited, together with its subsidiaries, produces and sells coal and coal products in India. The company offers coking coal for steel making and metallurgical industries, as well as for hard coke manufacturing; semi coking coal for blend-able coal in steel making, merchant coke manufacturing, and other metallurgical industries; and non-coking coal for cement, fertilizer, glass, ceramic, paper, chemical, and brick manufacturing, as well as power generation and other heating purposes. It also provides washed and beneficiated coal for manufacturing of hard coke for steel making and power generation, as well as for cement, sponge iron, and other industrial plants; middling products for power generation, domestic fuel plants, brick manufacturing units, cement plants, and industrial plants, etc.; and reject products for fluidized bed combustion boilers for power generation, road repairs, briquette making, and land filling, etc. In addition, the company offers CIL/LTC coke for use in furnaces and kilns of industrial units, as well as for domestic fuel by halwais and hotels, etc.; coal/coke fines for use in industrial furnaces and domestic purposes; and tar, heavy and light oil, and soft pitch for use in furnaces and boilers of industrial plants, power houses, oil, dye, and pharmaceutical industries, etc. Further, it engages in coal mining and gasification; consultancy support in coal and mineral exploration; and renewable energy activities. The company serves the power and non-power sectors. The company was formerly known as Coal Mines Authority Limited and changed its name to Coal India Limited in January 1975. Coal India Limited was incorporated in 1973 and is headquartered in Kolkata, India.