Coal India
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Coal India Limited is navigating a pivotal transition, balancing its core role in India's energy security with a strategic shift towards diversification into renewable energy and coal gasification. Management's optimistic outlook on coal demand through 2035, coupled with initiatives to enhance operational efficiency and expand into solar energy, supports Vista's forecast of stable margins and moderate revenue growth. However, the company faces significant challenges, including high fixed costs and logistical bottlenecks, which could pressure profitability in the near term. The planned IPOs of subsidiaries may serve as catalysts for valuation re-rating, while the ongoing investments in coal gasification and renewable projects are expected to diversify revenue streams. Industry dynamics, including rising demand for strategic metals and competitive pricing pressures, further complicate the landscape. Over the next 12-24 months, key opportunities lie in scaling renewable energy projects and optimizing coal operations, while watchpoints include execution risks and cost management amid inflationary pressures
Why We Like This Stock
- Management's focus on operational efficiency and diversification into renewable energy is expected to enhance long-term growth prospects
- The planned IPOs of subsidiaries could unlock value and provide additional capital for strategic initiatives
- Strong demand for coal-based power generation supports revenue stability despite current cost pressures
Things To Watch Out For
- High fixed costs and logistical challenges may continue to pressure margins in the near term
- Increased competition from renewable energy sources poses a risk to coal demand and pricing power
- Execution risks associated with large-scale diversification projects could impact operational performance
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 144,762 | 143,369 | 168,400 | 173,811 | 184,399 |
| Profit Before Tax (Cr.) | 48,794 | 46,967 | 41,923 | 34,160 | 42,300 |
| PBT Margin | 33.7% | 32.8% | 2489.5% | 19.7% | 22.9% |
| Net Profit (Cr.) | 37,222 | 35,868 | 30,952 | 25,181 | 31,158 |
| Earnings Per Share | 60.5 | 58.3 | 50.3 | 40.8 | 50.6 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Anand Rathi | ► Neutral | 520 | 29-Jul-2026 |
| Axis Securities | ▲ Buy | 485 | 01-Jul-2026 |
| CLSA | ▼ Reduce | 385 | 08-May-2026 |
| Citigroup | ► Neutral | 430 | 28-Jul-2026 |
| Elara Capital | ► Accumulate | 522 | 28-Apr-2026 |
| HDFC Securities | ► Add | 500 | 29-Apr-2026 |
| HSBC | ► Hold | 440 | 28-Apr-2026 |
| JMFinancials | ► Hold | 515 | 09-Jun-2026 |
| JPMorgan | ► Neutral | 430 | 28-Jul-2026 |
| Jeffries | ▲ Buy | 500 | 28-Jul-2026 |
| Macguire | ► Hold | 445 | 10-Apr-2026 |
| Mirae Asset | ▲ Buy | 530 | 16-Jun-2026 |
| Moneycontrol | ▲ Overweight | nan | 28-Jul-2026 |
| Morgan Stanley | ► Equalweight | 420 | 28-Jul-2026 |
| Motilal Oswal | ▲ Buy | 510 | 28-Jul-2026 |
| Nuvama | ▲ Buy | 485 | 02-Jun-2026 |
| Prabhudas Liladhar | ► Accumulate | 472 | 28-Jul-2026 |
| UBS | ▲ Buy | 550 | 01-Jul-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 thermal grade 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 rejects 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 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 and solar energy. 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.