Coal India Share Price: All You Need to Know

Coal India’s unmatched strategic relevance in securing India’s energy requirement and supporting economic growth makes it an attractive investment opportunity. And, after the recent market correction and sharp drop in Coal India share price, does it still offer value at current levels. Let’s check out. 

Overview of Coal India

Coal India is a state-owned world’s largest coal mining company. It produced 774 MT of coal in FY24, accounting for nearly 40% of primary commercial energy requirement. 

The company primarily operates through the long term coal supply contracts with companies and auctions in the free market. Due to its strong financial position and established track record of being profitable, the government has granted it the status of “Maharatna” enterprise. 

Because of the Maharatna status, it enjoys greater financial autonomy, operational freedom, and strategic flexibility. 

Coal India Management Team

Shri PM Prasad is the Chairman & Managing Director of Coal India. He has been with the company since 1984 and joined as an executive trainee with Western Coalfields Limited. He did M. Tech. in ‘Open-Cast Mining’ from Indian School of Mines (IIT- ISM), Dhanbad.

Shri Vinay Ranjan is the Director (Personnel & Industrial Relations) with extensive experience in Human Resource affairs including talent management, performance management, employee engagement, etc. 

Shri Debasish Nanda is the Director (Business Development) and has joined the company in July 2022. Prior to this, he was working as Executive Director (Gas) in Indian Oil Corporation, where he joined the company in 1988 as management trainee. Currently at CIL, Shri Nanda is responsible for leading the diversification portfolio at CIL including forward integration.

Shri Mukesh Choudhary is the Director (Marketing) from December 2022. Prior to joining CIL,  he was Deputy Director General, Department of Defence Production at the Ministry of Defence. Career wise, he is an Officer of Indian Ordnance Factory Services (IOFS) 1996 batch and Mechanical Engineering (Honours) graduate from Engineering College Kota. He also holds a Master of Financial Analysis (MFA) degree and a MBA degree.

Shri Mukesh Agrawal is the Director (Finance) and joined the company in Feb 2024. He is science graduate from University of Allahabad and a Member of the Institute of Cost Accountants of India. Earlier, he has worked with public sectors like ITI Limited, IRCON, NLC India. 

Coal India Shareholding Pattern

In the domestic institution segment, Mutual Funds hold 10.81% and LIC holds 9.74% stake in the company.

Coal India Financial Performance

Net Sales

In FY24, CIL reported 2.1% sales growth to ₹1.30 lakh crore from ₹1.27 lakh crore in FY23. 

And, in the first nine months of FY25- the company’s sales declined by 3% to ₹92,800 crore from ₹96,962 crore, reported for 9MFY24 period. 

EBITDA

In FY24, EBITDA growth was 8.5% to ₹51,793 crore from ₹47,722 crores in FY23. EBITDA Margin to net sales in FY24 was 39.74%. 

For the 9MFY25 period, the EBITDA Margin to Net Sales came in at 41.32%, from 40.61% recorded in the same period previous fiscal. 

Net Profit

In FY24, CIL recorded a 17.7% rise in net profit to ₹37,369 crores, from ₹31,723 crores in FY23.

And, in the first nine months of FY25, net profit declined by 11% to ₹25,710 crores from ₹28,839 crores reported in the same period last year. 

The net profit margin to net sales of the company rose to 28.67% in FY24, from 24.86% in FY23 and has consistently improved over the last five years. 

Period	FY20	FY21	FY22	FY23	FY24
Net Profit Margin (%)	18.69	15.36	17.28	24.86	28.67

Key Financial Metrics

Current Ratio: At the end of December 2024, the current ratio of the company was 1.72 times, slightly increasing from 1.70 times recorded the previous year. 

Debt Equity Ratio: The company has negligible debt in its book. At the end of December 2024, the debt to equity ratio of the company was 0.09 times.

Return on Capital Employed (ROCE): The metric shows how much the company is generating returns on equity and debt investment and is directly linked to the Coal India share price growth. In the last five years, CIL has improved its ROCE consistently from 16.14% in FY21 to 27.30% in FY24. 

Period	FY20	FY21	FY22	FY23	FY24
ROCE (%)	22.60	16.14	19.25	28.21	27.30

Coal India Share Price Analysis

In the recent market correction, Coal India share price has witnessed a sharp drop. As of 7th March 2025, Coal India share price has declined by close to 22% in the last six months, from ₹485 to ₹381. 

It made an all-time high level of  ₹543.55 on 26th August 2024. 

However, despite the correction, Coal India share price has given returns of 19% annually in the last five years.

Coal India has a consistent dividend paying track record. In the last three financial years, it paid ₹17 in FY22, ₹24.25 in FY23, ₹25.50 in FY24. 

The dividend payout ratio for the last three financial years was 60.35%, 47.05% and 42.02% respectively. 

At current Coal India share price of ₹381, the dividend yield ratio is 6.7%.

Coal India Share Price Valuation Score 

Earning Per Share (EPS)

The following is the last five years Earnings Per Share of Coal India:

Period	FY20	FY21	FY22	FY23	FY24	9MFY25
EPS (₹)	27.12	20.61	28.17	51.54	60.69	41.79

EPS of Coal India has increased from ₹27 in FY20 to ₹61 in FY24, which helped in the Coal India share price growth during the period. 

For the 9MFY25 period, the EPS came in at ₹41.69, which is lower from ₹46.78, recorded for the same period previous year. 

Know More:  SEBI Registered Investment Advisory |  Stock Investment Advisory

Price-to-Book VS Median Price-to-Book

At current Coal India share price of ₹381, the stock is trading at 2.4 times its book value and the 5 year median price-to-book value is 2.8, which indicates, the stock is trading at slight discount. 

Source: Screener (As on 7th March 2025)

Price-to-Equity VS Median PE

Coal India share price is trading at a PE of 6.83 and the 5 year median PE is 6.5, indicating it is neither trading at a discount or premium. 

Source: Screener (As on 7th March 2025)

Coal India Share Price Future Growth Potential 

Let’s first look at the operational metrics of Coal India. 

Flat Volume Growth in Coal India in FY25. The company has been consistently improving its coal production rate and has increased from 602 MT in FY20 to nearly 774 MT in FY24. 

However, the volume growth in FY25 looks subdued due to various operational challenges like inclement monsoon, rake unavailability for dispatch, and few technical challenges. For the full financial year, the company is expecting a production of 788 MT, revised from 838 MT set initially. 

Absence of volume growth can hit revenue and profitability growth metrics in the near term. 

Period	FY20	FY21	FY22	FY23	FY24	9MFY25
Volume (MT)	602.13	596.22	622.63	703.20	773.64	543.36 (+2%)

Coal India relies heavily on e-Auction to drive its revenue growth. Due to absence of strong demand and highest pit head inventory at 70 MT, auction prices have remained stable impacting earnings growth. 

Also, subdued demand from power sector due slow economic growth can also impact Coal India share price. 

Another major shift is happening is the drop in coal’s share in India’s power generation capacity. In the first quarter of 2024, the share of coal in India’s power generation capacity dropped below 50%. This is the first drop since 1960, as the government is moving rapidly to increase India’s renewable energy capacity. 

According to IEA, global coal demand is set to plateau through 2027 due to the massive expansion of renewables. And, India will also follow the trend. The global share of coal-fired power generation is expected to come down to 55% by 2030 and a complete phase-out by 2040. 

Diversification of Operations

The growth of renewable energy sources pose a significant challenge and growth of Coal India share price. To address the issue, the company has undertaken many diversification initiatives including:

• Coal to Chemicals and Fertilizers
• Entry to Renewable Energy 
• Surface Coal Gasification
• Critical Mineral Value Chain

With favorable returns metrics (ROCE), earnings growth (EPS), and favorable valuations, Coal India share price may offer long term growth potential. However, much of it will depend on its ability to improve its production rate. 

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