Coal India is a coal mining company that is owned by the Government of India. The company is headquartered in Kolkata.
As of March 2018, Coal India has a market capitalisation of about Rs.173,000 crore.
Wealth and recent performanceCoal India Q1 FY 2018-19 Results
- The company reported a 61.07% rise in its consolidated net profit to stand at Rs.3,786.44 crore for the said quarter as against Rs.2,350.78 crore reported in the same period last fiscal.
- Its net income inclined by 17% to stand at Rs.25,470.86 crore during Q1 FY 2018-19 as compared to Rs.21,774.42 crore posted during the same period last year.
- However, expenses continued to be higher which stood at Rs.19,383.99 crore as against Rs.17,837.17 crore during the April-June quarter last year.
- During the said quarter, coal production stood at 136.85 million tonnes, while offtake was 153.47 million tonnes.
- The company, which produces more than 80% of domestic coal output, has set a target of producing 630 million tonnes for the current fiscal.
- Coal India reported having earned a pre-tax profit of Rs.10,726.44 crore as against Rs.14,446.33 crore reported during the same period last year.
- The company’s profit after tax stood at Rs.7,020.22 crore compared to Rs.9,279.77 crore posted last fiscal.
- Also, its comprehensive income stood at Rs.7,652.73 crore as compared to Rs.9,361.77 crore last financial year.
- The company paid an interim dividend of Rs.10,242.24 crore at Rs.16.50 per share. While the share of the Government of India was Rs.8,044.86 crore and the remaining of Rs.2,197.38 crore was offered to other shareholders.
- The mining company reported that its profit more than halved to stand at Rs.1,295.22 crore for the period between January-March as compared to Rs.2,718.75 crore during the same period during last fiscal.
- The company’s consolidated sales for the said quarter stood at Rs.25,108.69 crore as against Rs.24,025.04 crore during the same quarter last fiscal.
- The consolidated EBITDA stood at Rs.194 crore for the said quarter as compared to Rs.3,460 crore reported last fiscal during the same period.
- Also, the company reported that its ‘employee benefit expense’ for the quarter rose to Rs.16,653.86 crore compared to Rs.9,240.67 crore during the corresponding period last year.
- According to the consolidated unaudited financial results for the third quarter of the financial year ending 2017–2018, the total income of Coal India rose from Rs.18,759.01 crore in the second quarter to, Rs.22,484.14 crore in the third quarter.
- However, the total income for the third quarter of the FY18 was less than the total income for the corresponding period in FY17 at Rs.23,064.65 crore.
- While total expenses of Coal India rose from Rs.17,732.60 crore in the second quarter of FY18 to Rs.17,873.93 in the third quarter of the same year, this was still a reduction in expenses compared to the third quarter of FY17 at Rs.18,907.17 crore.
- The profit before tax for the third quarter of FY18 was Rs.4,610.21 crore. The profit before tax for the previous quarter was Rs.1,026.41 crore. The profit before tax for the third quarter of FY17 was Rs.4,157.48 crore.
- The profit for the third quarter of FY18 was Rs.3,004.79 crore, which was almost a ten-fold increase from Rs.368.88 crore in the previous quarter. The profit of Rs.3,004.79 crore was greater than the profit for the third quarter of the FY17 at Rs.2,883.27 crore.
Stock trend in 2018
- In January 2018, Coal India’s stock began trading at about Rs.266. The stock gained steadily throughout the first two weeks with a high of about Rs.309. The stock dipped and gained again to end the month at about Rs.299. This was a gain of more than Rs.30 for the month.
- The stock remained below Rs.300 for the first week of February 2018, steadily increasing for the rest of the month. The stock did not go below Rs.300 again for that month. The stock closed at about Rs.309 for the month.
- In March 2018, the stock opened at about Rs.312 and the stock dipped after that. For the first week of March, the stock did not go below Rs.300 but by the second week, it had dipped below Rs.300 and it closed for the second week of March at about Rs.278. This was a major dip in prices from the initial price at the beginning of the month.
- When the stock market opened for trading on the 2nd of April, the scrip dropped more than 5 points to stand at Rs.277.50 and rose to touch Rs.285.00 on the last day of the month.
- The stock lost more than 5 points to end at Rs.280.50 on the 2nd of May and dropped significantly losing nearly 20 points to end at Rs.263.50 on the 15th; however, the scrip gained more than 30 points to end the month at Rs.296.25.
- The stock dropped about 2 points on the 1st of June to stand at Rs.294.65; however, it lost more than 45 points to end at Rs.259.00 on the 25th and ended the month at Rs.264.35
- On the 1st of July, Coal India share price stood at Rs.260.55 and fluctuated over the course of the month to end at Rs.261.10.
- The scrip rose by 9 points on the 1st of August to stand at Rs.270.65 and gained more than 15 points to end at Rs.285.95.
Stock history (2016–2017)
- Coal India’s stock began trading at about Rs.334 in the beginning of January 2016. The stock dipped steadily throughout the month with a low of Rs.288. Then the stock recovered and closed for the month at about Rs.319. February 2016 saw a number of fluctuations in prices, with periods of both gain and decline with the price touching a low of about Rs.295 and closing for the month at about Rs.311. March 2016 saw the price touch a high of about Rs.325 but it declined again to end the month at about Rs.291. An interim dividend of 274% was announced on 14 March 2016.
- The stock began trading at about Rs.287 in April 2016. The stock did not cross Rs.300 for the entire month of April. The final price for the end of the month was about Rs.288. The opening price for May 2016 was about Rs.288 and the stock did not gain much until the last week of May when it closed for the month at about Rs.291. In June 2016, the stock still gained, with the opening price being about Rs.297. The stock continued on an upward trend for the rest of the month, closing at about Rs.313. The highest price for that month was about Rs.317.
- Coal India’s stock opened at about Rs.310 at the beginning of July 2016. The stock fluctuated a lot before touching a high of about Rs.333 for the month. The stock closed at about Rs.328 at the end of the month. In August 2016, the stock opened at about Rs.326, steadily gaining through the second week of the month to reach a high of about Rs.347. Then, the stock dipped, ending the month at about Rs.333. The stock gained a little in September, opening at about Rs.338. The stock dipped below that and for the rest of the month did not even come close to the opening price. The stock closed at about Rs.322 for the month.
- The stock began at about Rs.327 for October 2016. The stock then declined with a low of about Rs.311. The stock finally closed at about Rs.325 by the end of the month. In November 2016, the stock opened at about Rs.330 and while the first week saw a decline in prices, the second week was a steep increase in prices. The stock touched a high of about Rs.333 in the second week of the month. The stock went into a sharp decline in the second and third weeks, touching about Rs.300. The stock gained a little after that to close for the month at about Rs.308. In December 2016, the stock opened at about Rs.306. It touched a high of about Rs.312 in the first week but dipped below that for the rest of the month. By, 26 December 2016, the stock had touched its lowest point for the quarter at about Rs.285. The stock gained steadily again to end the month at about Rs.300.
- In January 2017, the stock opened at about Rs.300. The stock gained a high of about Rs.316 in the first two weeks. The stock closed at about Rs.309 for the month. In February 2017, the stock opened at about Rs.313. The stock gained for the first week of the month to touch about Rs.326. In the final week of the month, the stock touched a high of about Rs.329. By the end of the month, the stock had dropped to about Rs.321. The stock opened about Re.1 in March 2017 compared to the price at the end of the previous month. The lowest price for the month was about Rs.289 in that month. The stock touched that point twice. The stock closed for the month at about Rs.292. The company announced an interim dividend of 188% on 14 March 2017. The company also announced an interim dividend of 12% on 27 March 2017.
- The price opened at about Rs.295 for the first quarter of FY18. The price then continued reducing for the rest of the quarter. By the end of April, the stock had dipped to about Rs.276. In May 2017, the stock opened at about Rs.276. The lowest price for the month was about Rs.261 and the stock closed at about Rs.262 for the end of the month. In June 2017, the stock opened at about Rs.265. The stock then dropped steadily to close the month at about Rs.244.
- In July 2017, the stock opened at about Rs.248. The stock touched a high of about Rs.262 for the month. The stock closed for the month at about Rs.249. In August 2017, the stock opened at about Rs.251. The stock closed for the month at about Rs.237. In September 2017, the stock opened at about Rs.238 and gained steadily for the rest of the month to close at about Rs.270.
- October 2017 saw a steady increase in prices, with the stock closing at about Rs.286 for the month. The stock’s highest value that month was about Rs.293. In November 2017, the stock opened at about Rs.286. This then gave way to a dip in prices. The lowest price for the month was about Rs.268. The stock closed at about Rs.275 at the end of the month. By December, the stock opened at about Rs.272. The price declined for the rest of the month before closing at about Rs.262 at the end of the month.
Should one invest in Coal India?
- Coal India is a Maharatna company, indicating strong performance metrics.
- On the first day of trading of Coal India’s shares, the opening price was Rs.291 and the closing price was Rs.342. This was one of the highest increases posted in a single day of trading, especially on the first day of trading.
- In 2011, the company was India’s most valued company.
- There are 101 coal mines in India and Coal India supplies 98 of them.
- Since about 70% of India’s power generation happens using coal, the demand for coal is unlikely to reduce for the time being.
- The company has crossed the half-a-billion tonne mark in coal production.
- The company has shown an increase in profits from FY17 to FY18.
- The company has paid out dividends that indicate that it could be a good long-term investment.
- The company has also gone the extra mile to ensure that it is more eco-friendly and that it adopts environmentally sustainable and less polluting methods for coal mining.
- All of these points indicate that Coal India’s stocks could be a good investment but it would be better to invest after performing research personally based on financial resources and risk appetites.
Coal India is controlled by the Government of India. It is a Maharatna company. It is the world’s largest producer of coal. About 82% of the coal produced in India comes from Coal India. Only about ten per cent of the shares of the company were initially offered to the public for sale in 2010. The IPO was over-subscribed, and the shares increased by 40% over the actual IPO price. In early 2015, the company offered a further ten per cent of the shares for sale to the public.
Initially, all coal mining in India was privatised. The Government of India then established a company that was known as the National Coal Development Corporation (NCDC) in order to have better control over the resource in order to ensure rapid industrialisation. Then, slowly, the Government of India began to nationalise coal mines in the country. At one point, all coking coal mines were controlled by Bharat Coking Coal Limited (BCCL) and all non-coking coal mines were controlled by the Coal Mines Authority. In order to combine all coal sources for better coal resource management, the Government of India created a new company. Coal India Limited (CIL) was formed in 1975 as a public-sector company and the CMA was closed. Coal India Limited had five subsidiary companies—Bharat Coking Coal Limited (BCCL), Eastern Coalfields Limited (ECL), Central Coalfields Limited (CCL), Western Coalfields Limited (WCL), and Central Mine Planning & Design Institute Limited (CMPDIL). In addition to these five subsidiaries, three more were formed—Northern Coalfields Limited (NCL), South-Eastern Coalfields Limited (SECL), and Mahanadi Coalfields Limited (MCL). The Government of India held all shares of CIL until about 2010 when an IPO was announced.
Mr. Gopal Singh is the Chairman and Managing Director. The company has four Directors—Mr. Chandan Kumar Dey for Finance, Mr. S N Prasad for Marketing, Mr. Binay Dayal for Technical, and Mr. Ram Prakash Srivastava for P & IR. The company also has two Government Nominee Directors. There are seven Independent Directors. In addition to these people, there are three permanent invitees to the Board.
Coal India’s shares are traded on the BSE and the NSE.
BSE: 533278; NSE: COALINDIAEQ; ISIN code: INE522F01014; Sector: Mining; Industry: Mining/Minerals
Other than these, the company is also listed on the MCX Stock Exchange.
Coal India also forms a part of indices like, the Nifty 100, Nifty LargeMidcap 250, S&P BSE 500, et cetera.
Coal India Limited Head Office
Coal Bhawan, Premise No-04 MAR, Plot No-AF-III, Action Area-1A, Newtown, Rajarhat, Kolkata-700156, India.
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