Decentralization of Government: The Rise of Local Governance and Regional Autonomy

         COAL INDIA

 Coal India is a production of coal flagship company, who announced dividend for each share you hold, you will receive first dividend reward is 5 rupees it is interim dividend.  Coal India Share price is 370 rupees approximate. Buy this share before 31 January, 2025. read this article for more information about Coal India

 Coal India

 Coal India limited is mainly engaged in mining and production coal and also operates coal washeries. The major consumer of the company are the power and steel sector. Consumers from other sector include cement, fertilizer, bricks, kilns etc.

 

Financial Performance of Coal India

The financial performance of the company for three consecutive quarters -December 2024, September 2024, and June 2024 - is summarized as follows.

In December 2024, the total revenue was 37,993Cr, while gross profit was 29,050Cr. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) stood at 14,531Cr, and the net profit was 8,491Cr.

 In September 2024, the total revenue was slightly lower at 32,315Cr, with a gross profit of 24,382Cr. EBITDA during this quarter was 10,259Cr, and the net profit was 6,274Cr.

For June 2024, the total revenue was 38,434Cr, gross profit was 30,309Cr, EBITDA reached 16,308Cr, and the net profit was 10,943Cr.

 The table below presents the data for better clarity: 

Quarters	Dec 24	Sep 24	Jun 24
Total Revenue	37,993	32,315	38,434
Gross Profit	29,050	24,382	30,309
EBITDA	14,531	10,259	16,308
Net Profit	8,491	6,274	10,943

 

This data indicates stable financial performance across the three quarters, with consistent gross profit and slight variations in total revenue, EBITDA, and net profit.

 Coal India

The company’s performance over the last three years is summarized below, highlighting growth in key metrics:

 Sales Growth: - Over three years, sales have grown by 58%, indicating strong business performance and revenue expansion.

 EBITDA Growth: - The company achieved a 151% growth in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), reflecting improved operational efficiency.

 Net Profit Growth: - Net profit grew by 194% during this period, showcasing the company's ability to increase profitability despite market challenges.

 Stock Price Growth: - The stock price experienced a 145% increase, reflecting moderate investor confidence and market performance.

This data highlights the company's steady growth across key financial metrics, driven by effective strategies and consistent performance.

The data is presented in table form below for clarity:

Metric	3 Years
Sales Growth	58
EBITDA Growth	151
Net Profit Growth	194
Stock Price Growth	145

 

Assets and Liabilities

Assets

Category	Amount
Long Term & Other Assets	₹61,371 Cr
Physical Assets	₹75,668 Cr
Inventory	₹10,966 Cr
Receivables	₹13,255 Cr
Cash & Short Term	₹77,199 Cr

 

Liabilities + Equity

Category	Amount
Equity	₹82,729 Cr
Other Liabilities	₹1,33,769 Cr
Debt	₹6,523 Cr
Accounts Payable	₹8,385 Cr

 

Shareholding Pattern

As of September 24th, the shareholding pattern of the company reveals how ownership is distributed among different types of investors. The promoters, or company founders and major stakeholders, hold the largest share, owning 63% of the company. This large ownership gives them substantial control over the company's decisions and operations.

Foreign Institutional Investors (FIIs) own 8% of the company's shares. These are large investors, typically from overseas, such as international banks, pension funds, and mutual funds. Their stake indicates that the company has attracted significant interest from global investors.

Domestic Institutional Investors (DIIs), which include local banks, insurance companies, and other investment institutions, own 21% of the company’s shares. This shows strong local support for the company from institutional investors.

The remaining 6% of the shares are held by the public, which includes individual retail investors and other smaller shareholders. This portion is comparatively small, meaning that individual investors have less influence over the company's decisions compared to promoters and institutional investors.

Shareholding Percentage	Category
63	Promoters
8	FII
21	DII
6	Public

Overall, the shareholding pattern highlights the dominance of the promoters in controlling the company, with institutional investors playing a significant role in ownership as well. 

 

Market Cap

 

Metric	Value
Market Cap (Cr.)	2,31,349
Sales in last 12 months (Cr.)	1,27,716
Sector	Mining and mineral products
Book Value per share	156

 

Market Capitalization 2,31,349 Crore

This figure represents the total market value of the company's outstanding shares. It is calculated by multiplying the company's current share price by the total number of shares outstanding.

Sales in Last 12 Months 1,27,716 Crore

This metric indicates the company's revenue generated over the past year. It provides insight into the company's sales performance and its ability to generate income.

Sector: –Mining and mineral products

This information classifies the company's industry as belonging to Mining and mineral products base company. This categorization helps investors understand the company's competitive landscape and potential growth drivers within its specific market.

Book Value per Share: 156

Book value per share represents the company's net assets per share. It is calculated by dividing the company's total assets minus total liabilities by the total number of outstanding shares. This metric gives investors an idea of the company's intrinsic value and financial health.

The three common financial ratios used to assess a company's valuation: the Price-to-Earnings Ratio (P/E), the Price-to-Book Ratio (P/B), and the Price-to-Sales Ratio (P/S).

The P/E ratio, which is 6x in this case, measures the market value of a company's stock relative to its earnings per share. A higher P/E ratio suggests that investors are willing to pay a premium for the company's future earnings potential.

The P/B ratio, at 2x, compares the market value of a company's stock to its book value per share (assets minus liabilities). A higher P/B ratio indicates that the market values the company's intangible assets (like brand value, intellectual property) more than its tangible assets.

The P/S ratio, which is 1x, evaluates the market value of a company's stock relative to its annual revenue. A higher P/S ratio might suggest that investors expect strong future revenue growth or are willing to pay a premium for the company's market share.

 

Financial Ratio

1. Return on Equity (ROE): 46.30% (3-year average)

· This shows how well the company is using its equity (owner's money) to generate profits. A high ROE is a good sign of strong profitability.

2. Return on Capital Employed (ROCE): 28.25% (3-year average)

· This ratio tells us how efficiently the company is using both its debt and equity to make profits. A high ROCE suggests the company is making good use of its resources.

3.Debt-to-Equity Ratio: 0.08x (3-year average)

· This measures the company’s debt compared to its equity. A low ratio means the company is not overly reliant on debt, which reduces financial risk.

4. Interest Coverage Ratio: 57.56x (3-year average)

· This shows how easily the company can pay its interest on debt. A high ratio indicates that the company is in a strong financial position and can easily meet its debt obligations.