As of November 21, 2023, Coal India Limited operates as a PSU owned by the Central Government of India with a market capitalization of ₹2,06,547 crore, ranking as India’s 29th most valuable company. Coal India is currently trading at Rs. 334.10 with a PE ratio of 7.35. Recently Coal India announced their strong Q2 FY2024 results and also declared dividends.
The performance of Coal India’s share price, the biggest coal mining firm in the world, has recently made headlines. Investors are curious to know the target price for Coal India’s shares from 2024 to 2030.
In the upcoming years, it is anticipated that Coal India’s stock will perform well due to the rising demand for coal brought on by the expansion of industries. But the real query is: Is Coal India a worthwhile stock to purchase today?
About Coal India
Coal India Limited, headquartered in Kolkata, is the largest government-owned coal producer globally and the seventh largest employer in India with around 272,000 employees. It contributes about 82% to India’s total coal production and achieved a record production of 554.14 million tonnes of raw coal in 2016-17, generating revenues of ₹95,435 crore (US$12 billion) in the same financial year.
In April 2011, it was granted the Maharatna status by the Government of India, making it one of the seven companies with that distinction.
Stock History of Coal India
Coal India Ltd, the government-owned mining firm, debuted on November 4, 2010 on public exchanges. Coal India’s initial public offering (IPO), which raised about Rs 15,000 crore ($2.5 billion), was one of the biggest in India. The IPO was well received by investors and was 15 times oversubscribed.
Coal India’s stock price fluctuated throughout time and had various ups and downs. Currently, Coal India’s share price is trading at Rs. 234 as of 2nd August 2023.
The history of Coal India’s stock has been uneven overall. Although the business has experienced numerous difficulties throughout the years, it has managed to stay afloat and deliver consistent returns to investors. With the increasing demand for coal, the company’s stock is expected to perform well in the coming years.
Coal India Q2 Fy 2024 Results
Coal India Q2 FY 2024 Results: Key Points and Summary
- Net Profit Increase: Coal India reported a significant increase in its net profit for the second quarter (Q2) of the fiscal year 2024, reaching ₹6,813 crore. This represents a 12% rise from the ₹6,044 crore reported in the same period last year.
- Revenue Growth: The company’s revenue from operations also saw a healthy growth, with a 10% year-on-year increase, reaching ₹32,776 crore in Q2 FY24, compared to ₹29,838 crore in Q2 FY23.
- Interim Dividend Declaration: Coal India announced an interim dividend of ₹15.25 per equity share, which is a substantial 152.5% of the face value of ₹10 per share. The record date for this dividend is set for November 21, 2023.
- Consolidated Profit and Revenue Details: The company’s consolidated net profit also increased by 13% to ₹6,814 crore for the quarter ended September 30, 2023. The rise in consolidated revenue from operations was 10%, amounting to ₹32,776 crore.
- Expense and Production Dynamics: Total expenses for the quarter grew by 9.4% to ₹26,000 crore, primarily due to higher employee and contractual expenses. Interestingly, the cost of raw materials decreased by 15.1%.
- Market Factors and Price Hike: The increase in profit and revenue can be attributed to high power demand and boosted production, especially amid a weak monsoon season. In May, Coal India had raised the prices of non-coking coal by 8% for high grades, expected to add an extra ₹2,703 crore in revenue for the remaining fiscal year.
- External Influences: The company’s performance was positively influenced by sustained high power demand in India, which remained elevated due to unusually dry weather and increased economic activity, coupled with a decrease in hydroelectric output.
Latest news about Coal India
- The increasing price of imported coal could potentially affect electricity rates.
- Coal India announces a dividend of Rs. 15.25 per share.
- Shares of Coal India fall by 4% as the stock is traded ex-dividend.
- Coal India has commenced its pursuit of acquiring essential mineral assets, such as Lithium, Cobalt, and Nickel, from overseas sources.
You can buy Coal India shares from the following trading platforms:
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Coal India’s share price YTD is up 48.79%
Coal India’s maximum share price target for the year 2025 is expected to be ₹369.35 in November, while the minimum price is expected to be ₹208 in March 2023.
Coal India’s international search for new valuable minerals could help Coal India grow in the future. This can lead to a significant rise in the stock price of the company.
Our analysis suggests that Coal India’s share prices are likely to experience a bullish trend in 2023, with significant growth percentages predicted for each month.
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Analyzing the price target of Coal India in the year 2024, we can tell that there is a positive trend predicted for the share prices of Coal India in 2024. Coal India’s maximum price target for the year 2024 is expected to be ₹422.35 in December, while the minimum price target is expected to be ₹218.87 in May.
The average target for Coal India’s share prices in 2024 is estimated to be around ₹333.56.
Based on the maximum and minimum price targets, the upside potential for investors is significant, with a potential increase of up to 93.14% from the minimum price target of ₹218.87 to the maximum price target of ₹422.35. However, it is important to note that these are only projections and may vary based on various economic and market factors.
Based on our analysis, it seems that Coal India’s shares have a positive recommendation for investors in 2024. The share prices are predicted to rise throughout the year, with the highest price target of ₹422.35 in December.
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It is visible to us that the share price band of Coal India shows that there is a positive trend predicted for the share prices of Coal India in 2025, with a higher return potential than the previous year.
The maximum price target for the year is expected to be ₹512.32 in December, while the minimum price target is expected to be ₹297.29 in May. This shows a significant difference of ₹215.03 between the maximum and minimum price targets. What do you think will be the share price of Coal India by the end of 2025?
Investors can potentially earn a considerable return on their investment in Coal India’s shares in 2025, with a potential increase of up to 72.92% from the minimum price target of ₹297.29 to the maximum price target of ₹512.32.
Based on the analysis, it seems that Coal India’s shares have a positive recommendation for investors in 2025.
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Looking at the share price targets for Coal India over the next five years, there appears to be some fluctuation in the prices. In 2026, the maximum and minimum prices are predicted to be ₹358.62 and ₹251.04 respectively. This suggests a bearish outlook, with prices expected to decrease from the previous year.
However, in 2027, the maximum price is expected to rise to ₹304.83, while the minimum price is predicted to be ₹213.38, indicating a bullish trend. By 2028, the maximum price is forecasted to be significantly higher at ₹548.69, while the minimum price is expected to rise to ₹384.08.
The prices continue to rise in 2029 and 2030, with the maximum prices reaching ₹1,127.10 and ₹1,255.18 respectively, and the minimum prices increasing to ₹788.97 and ₹878.63.
This suggests a strong potential for returns for investors who remain invested in Coal India shares over the long term, although it’s important to keep in mind that stock prices are subject to fluctuations.
Coal India’s Financial Condition of Coal India: Last 5 years
|Mar 2019||Mar 2020||Mar 2021||Mar 2022||Mar 2023|
Profit Margin (%)
|Profit before tax||27,127||24,071||18,009||23,616||38,001|
|EPS (in Rs)||28.34||27.12||20.61||28.17||45.70|
Coal India, a leading player in the coal mining industry, has witnessed tremendous growth in terms of revenue and profit in the last five years. Coal India’s operating profit margin (OPM) has also been more than 20%, which is amazing.
The net profit witnessed significant growth in the last five years, with a minimum of ₹25,007 crore in FY19 to a maximum of ₹36,810 crore in FY23. The company’s earnings per share (EPS) also displayed similar trends, reaching 45.7 in May 2023, which is approximately 85% year-on-year growth.
The price-to-earnings (P/E) ratio of the company has been volatile, ranging from 6.75 in May 2022 to 5.14 as of August 2nd, 2023. Coal India’s dividend payout ratio has been around 50%, the latest being 53% in 2023.
Overall, Coal India has shown a mixed performance in terms of profit and loss in the last five years, with fluctuating PAT and EPS. However, the consistent OPM indicates that the company has been able to maintain its operational efficiency, while the volatile P/E ratio suggests that the market sentiment towards the company has been bearish in recent times.
Sharekhan has expressed a positive outlook on Coal India and has advised investors to buy the stock, setting a target price of Rs 330. (Report dated 25th September 2023)
Motilal Oswal is optimistic about Coal India and has suggested investing in the stock with a potential price of Rs 380. (Report dated 16th November 2023)
Coal India’s share price is expected to reach a maximum of ₹369.35 by the end of 2023.
Can Coal India reach 350 INR in 2023?
Yes, according to our analysis, Coal India can reach 350 INR in 2023.
The share price target of Coal India for 2025 might be around ₹512.32.
How much did Coal India declare as a dividend?
Coal India, in Q2 Fy2024, announced Rs. 15.25 as dividend.
The per-share price of Coal India might reach around ₹1,255.18 by the end of 2030.
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Conclusion: Should you buy Coal India in 2023?
According to our analysis of the last five years’ income growth, PAT, revenue growth, and profit growth, Coal India shares appear to be a strong long-term investment opportunity.
The business has consistently increased its sales and profits, and it has also maintained a steady net profit margin over time. The corporation has also established challenging goals for raising coal production in the upcoming years, which may lead to more revenue and profit growth.
For investors looking for consistent income, the dividend yield of 10.71% is very appealing. The shares are inexpensive (undervalued) if we look at the PE ratio of 7.69 (November 23), suggesting the possibility of future capital growth. The company saw a sales growth of 13% on average and profit growth of 19% in the last 3 years.
Positives: FIIs and DIIs have increased their position in the last quarter
After taking into account these elements, Coal India shares are a good buy for investors looking for long-term capital appreciation and income.
What did we learn?
- 1 About Coal India
- 2 Stock History of Coal India
- 3 Coal India Q2 Fy 2024 Results
- 4 Latest news about Coal India
- 5 How to buy Coal India (NSE: COALINDIA) shares?
- 6 Share Price Prediction of Coal India: 2023 to 2030
- 7 Coal India’s Financial Condition of Coal India: Last 5 years
- 8 Coal India share price target by Experts
- 9 FAQS
- 10 Conclusion: Should you buy Coal India in 2023?