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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 533278 | NSE: COALINDIA

Coal India Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 20, 2024, 11:09 pm

Market Cap 2,54,058 Cr.
Current Price 412
High / Low545/330
Stock P/E7.06
Book Value 156
Dividend Yield6.19 %
ROCE63.6 %
ROE52.0 %
Face Value 10.0
PEG Ratio0.59

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Coal India Ltd

Competitors of Coal India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Ganesha Ecoverse Ltd 116 Cr. 47.171.9/42.821.3 4.290.00 %28.2 %39.4 % 10.0
Foundry Fuel Products Ltd 7.01 Cr. 8.7414.6/4.12 1.350.00 %%% 10.0
Deccan Gold Mines Ltd 1,841 Cr. 120179/88.5 14.30.00 %8.77 %34.8 % 1.00
Asi Industries Ltd 367 Cr. 40.756.2/19.513.6 35.90.86 %10.1 %7.47 % 1.00
Anmol India Ltd 158 Cr. 27.868.0/27.311.8 18.40.00 %14.9 %23.6 % 10.0
Industry Average38,179.14 Cr642.0335.5076.751.72%19.61%20.19%5.38

All Competitor Stocks of Coal India Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales23,68626,70025,28223,29128,43432,70935,09229,83835,16938,15235,98332,77636,154
Expenses18,52120,26520,43919,35421,61123,60722,86522,70024,78131,25425,49224,63924,781
Operating Profit5,1656,4354,8433,9376,8229,10212,2277,13910,3896,89810,4918,13711,373
OPM %22%24%19%17%24%28%35%24%30%18%29%25%31%
Other Income6491,2246817826531,7679951,7611,6712,2821,5382,0742,489
Interest155157148141132121150135204195178182227
Depreciation9161,0971,0419341,0411,4129941,0771,2621,3421,1381,1781,260
Profit before tax4,7426,4064,3363,6436,3029,33512,0777,68710,5947,64210,7128,85012,375
Tax %35%28%27%20%28%28%27%21%27%28%26%23%27%
Net Profit3,0844,5893,1742,9334,5576,7158,8346,0447,7195,5287,9416,8149,094
EPS in Rs5.017.445.144.777.4010.8614.339.8112.588.9812.9311.0314.72

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales72,42468,30370,60874,12077,86178,16485,24499,58696,08090,026109,715138,252143,066
Expenses57,13150,21652,84256,77759,14765,71675,95674,57974,50071,39884,995101,442106,167
Operating Profit15,29318,08717,76617,34318,71412,4489,28825,00721,58118,62824,72136,81036,899
OPM %21%26%25%23%24%16%11%25%22%21%23%27%26%
Other Income8,0058,7527,1696,5705,9395,3164,9755,8346,4443,7423,8666,5518,382
Interest5646599388410430264503642541684782
Depreciation1,9691,8131,9962,3202,8262,9073,0633,4503,4513,7184,4294,6754,919
Profit before tax21,27324,97922,88021,58421,44014,44610,77027,12724,07118,00923,61638,00139,580
Tax %30%31%34%36%33%36%35%36%31%29%26%26%
Net Profit14,78817,35615,11213,72714,2679,2807,03817,46416,70012,70217,37828,12529,376
EPS in Rs23.4127.4823.9221.7322.5914.9511.3428.3427.1220.6128.1745.7047.66
Dividend Payout %43%51%121%95%121%133%146%46%44%78%60%53%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)17.37%-12.93%-9.16%3.93%-34.95%-24.16%148.14%-4.37%-23.94%36.81%61.84%
Change in YoY Net Profit Growth (%)0.00%-30.29%3.76%13.10%-38.89%10.80%172.30%-152.51%-19.57%60.75%25.03%

Coal India Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:7%
5 Years:7%
3 Years:16%
TTM:-1%
Compounded Profit Growth
10 Years:9%
5 Years:16%
3 Years:43%
TTM:9%
Stock Price CAGR
10 Years:2%
5 Years:15%
3 Years:39%
1 Year:22%
Return on Equity
10 Years:47%
5 Years:51%
3 Years:53%
Last Year:52%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:30 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital6,3166,3166,3166,3166,2076,2076,1636,1636,1636,1636,1636,1636,163
Reserves42,15636,08834,03728,51718,31113,97120,29225,99430,35536,98054,68076,56790,034
Borrowings1,3051784081,1993,0141,5382,2106,4345,8843,5144,3316,5237,816
Other Liabilities61,20662,35670,50577,52891,054103,754104,356111,430118,649132,780156,222147,217145,345
Total Liabilities110,983104,938111,267113,560118,587125,471133,021150,020161,051179,436221,396236,470249,359
Fixed Assets13,46614,78416,11522,08223,81127,57432,61836,78442,40546,67764,54775,66883,642
CWIP3,4964,3165,1594,5538,58510,2739,6588,32810,49012,89717,62218,96016,129
Investments2,3953,7752,8132,9061,4831,7043,1701,9735,9508,9217,1397,1109,058
Other Assets91,62682,06387,17984,01884,70885,92087,576102,936102,206110,942132,087134,731140,529
Total Assets110,983104,938111,267113,560118,587125,471133,021150,020161,051179,436221,396236,470249,359

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +9,10914,52514,38213,15416,46121,11516,3564,97710,59241,10735,73418,103
Cash from Investing Activity +-1,8338,5808948,154455-7,747-7,8961,033182-25,715-23,465-4,486
Cash from Financing Activity +-7,852-25,350-15,026-19,587-17,598-13,564-10,885-4,791-8,453-13,441-13,704-13,899
Net Cash Flow-575-2,2462501,721-682-196-2,4261,2192,3211,951-1,436-282

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow15.0017.00-161.00-391.0017.009.008.0023.0015.0013.0021.0032.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days564342545827205580383434
Inventory Days351321375541
Days Payable474150215
Cash Conversion Cycle3603233673805827205580383434
Working Capital Days-3819-11-57-314267-3-1127
ROCE %54%50%52%57%46%45%107%72%46%54%78%64%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters66.13%66.13%66.13%66.13%66.13%66.13%66.13%66.13%63.13%63.13%63.13%63.13%
FIIs6.56%6.74%6.59%6.94%6.54%6.73%7.86%7.84%9.30%7.80%8.59%8.41%
DIIs21.54%22.00%21.26%21.76%22.49%22.52%21.18%21.05%22.30%24.07%23.06%23.18%
Government0.07%0.08%0.09%0.09%0.09%0.09%0.09%0.09%0.10%0.10%0.10%0.11%
Public5.69%5.04%5.93%5.07%4.75%4.53%4.74%4.90%5.18%4.91%5.10%5.16%
No. of Shareholders10,79,91810,14,18612,89,84212,44,08712,70,49912,56,33812,84,08313,24,23813,24,73313,17,69913,80,10415,75,608

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India CPSE ETF145,656,04817.56360.812,721,8002024-11-201044.93%
HDFC Balanced Advantage Fund - Regular Plan73,700,0004.093218.4812,721,8002024-11-20479.32%
Parag Parikh Flexi Cap Fund69,326,7935.143027.512,721,8002024-11-20444.94%
SBI Nifty 50 ETF41,220,6831.041800.1112,721,8002024-11-20224.02%
HDFC Top 100 Fund - Regular Plan27,557,7213.81203.4512,721,8002024-11-20116.62%
ICICI Prudential Bharat 22 ETF21,505,3065.66941.2912,721,8002024-11-2069.04%
ICICI Prudential Bluechip Fund14,271,1981.21623.2212,721,8002024-11-2012.18%
Kotak Equity Arbitrage Fund - Regular Plan12,721,8001.42555.5612,721,8002024-11-200%
UTI Nifty 50 ETF11,489,0481.04501.7312,721,8002024-11-20-9.69%
Nippon India Small Cap Fund7,542,3750.72329.3812,721,8002024-11-20-40.71%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)60.6945.7028.1720.6127.12
Diluted EPS (Rs.)60.6945.7028.1720.6127.12
Cash EPS (Rs.)70.8753.2435.4026.6432.70
Book Value[Excl.RevalReserv]/Share (Rs.)135.6294.1471.1059.9752.82
Book Value[Incl.RevalReserv]/Share (Rs.)135.6294.1471.1059.9752.82
Revenue From Operations / Share (Rs.)230.94224.34178.03146.08155.91
PBDIT / Share (Rs.)90.7770.3746.4036.2945.48
PBIT / Share (Rs.)79.8462.7839.2130.2739.88
PBT / Share (Rs.)78.5161.6738.3429.2339.06
Net Profit / Share (Rs.)59.9445.6528.2120.6227.10
NP After MI And SOA / Share (Rs.)60.6945.7028.1720.6127.12
PBDIT Margin (%)39.3031.3626.0624.8429.16
PBIT Margin (%)34.5727.9822.0220.7225.57
PBT Margin (%)33.9927.4921.5320.0025.05
Net Profit Margin (%)25.9520.3415.8414.1117.38
NP After MI And SOA Margin (%)26.2720.3715.8214.1017.39
Return on Networth / Equity (%)45.2149.2040.2334.7751.97
Return on Capital Employeed (%)27.8927.1519.6716.9324.26
Return On Assets (%)15.7313.339.637.8511.11
Long Term Debt / Equity (X)0.060.070.070.070.06
Total Debt / Equity (X)0.070.070.070.160.19
Asset Turnover Ratio (%)0.630.010.010.010.01
Current Ratio (X)1.701.571.621.641.71
Quick Ratio (X)1.531.451.491.471.57
Inventory Turnover Ratio (X)1.260.000.000.000.01
Dividend Payout Ratio (NP) (%)40.3650.8762.1360.6544.24
Dividend Payout Ratio (CP) (%)34.2043.6349.5046.9336.67
Earning Retention Ratio (%)59.6449.1337.8739.3555.76
Cash Earning Retention Ratio (%)65.8056.3750.5053.0763.33
Interest Coverage Ratio (X)68.2763.3852.8134.6955.73
Interest Coverage Ratio (Post Tax) (X)46.0942.1133.1120.7134.21
Enterprise Value (Cr.)244214.3896630.2987582.0669368.0864649.33
EV / Net Operating Revenue (X)1.720.690.790.770.67
EV / EBITDA (X)4.372.233.063.102.31
MarketCap / Net Operating Revenue (X)1.880.951.030.890.89
Retention Ratios (%)59.6349.1237.8639.3455.75
Price / BV (X)3.232.302.612.202.68
Price / Net Operating Revenue (X)1.880.951.030.890.89
EarningsYield0.130.210.150.150.19

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Coal India Ltd as of November 21, 2024 is: 608.16

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, Coal India Ltd is Undervalued by 47.61% compared to the current share price 412.00

Intrinsic Value of Coal India Ltd as of November 21, 2024 is: 680.75

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, Coal India Ltd is Undervalued by 65.23% compared to the current share price 412.00

Last 5 Year EPS CAGR: 11.94%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 60.42%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 3.17, which is a positive sign.
  3. The company has higher reserves (39,075.54 cr) compared to borrowings (3,411.85 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (92.23 cr) and profit (23.23 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 148.00, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Coal India Ltd:
    1. Net Profit Margin: 25.95%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 27.89% (Industry Average ROCE: 18.38%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 45.21% (Industry Average ROE: 17.67%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 46.09
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.53
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 7.06 (Industry average Stock P/E: 31.07)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.07
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Coal India Ltd. is a Public Limited Listed company incorporated on 14/06/1973 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L23109WB1973GOI028844 and registration number is 028844. Currently Company is involved in the business activities of Opencast mining of hard coal. Company’s Total Operating Revenue is Rs. 1131.92 Cr. and Equity Capital is Rs. 6162.73 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Mining/MineralsCoal Bhawan, Premises No-04 MAR, Kolkata West Bengal 700156complianceofficer.cil@coalindia.in
https://www.coalindia.in
Management
NamePosition Held
Mr. P M PrasadChairman & Managing Director
Mr. Debasish NandaDirector
Mr. Vinay RanjanDirector - Personnel
Dr. B Veera ReddyDirector - Technical
Mr. Mukesh ChoudharyDirector - Marketing
Mr. Mukesh AgrawalDirector - Finance
Dr. Arun Kumar OraonIndependent Director
CA. Kamesh Kant AcharyaIndependent Director
CA. Denesh SinghIndependent Director
Prof. G Nageswara RaoIndependent Director
Mr. B Rajesh ChandarIndependent Director
Mr. Ghanshyam Singh RathoreIndependent Director
Mr. Punambhai Kalabhai MakwanaIndependent Director
Mr. Nagaraju MaddiralaGovernment Nominee Director
Mrs. Nirupama KotruGovernment Nominee Director

FAQ

What is the latest intrinsic value of Coal India Ltd?

The latest intrinsic value of Coal India Ltd as on 21 November 2024 is ₹608.16, which is 47.61% higher than the current market price of ₹412.00.

What is the Market Cap of Coal India Ltd?

The Market Cap of Coal India Ltd is 2,54,058 Cr..

What is the current Stock Price of Coal India Ltd as on 21 November 2024?

The current stock price of Coal India Ltd as on 21 November 2024 is ₹412.

What is the High / Low of Coal India Ltd stocks in FY 2024?

In FY 2024, the High / Low of Coal India Ltd stocks is 545/330.

What is the Stock P/E of Coal India Ltd?

The Stock P/E of Coal India Ltd is 7.06.

What is the Book Value of Coal India Ltd?

The Book Value of Coal India Ltd is 156.

What is the Dividend Yield of Coal India Ltd?

The Dividend Yield of Coal India Ltd is 6.19 %.

What is the ROCE of Coal India Ltd?

The ROCE of Coal India Ltd is 63.6 %.

What is the ROE of Coal India Ltd?

The ROE of Coal India Ltd is 52.0 %.

What is the Face Value of Coal India Ltd?

The Face Value of Coal India Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Coal India Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE