Coal India (COALINDIA)

FairStock Score: 68/100 — STEADY

Score breakdown: P/E: 3/3 · ROCE: 2/2 · Growth: 0/2 · Dividend: 1/1

Key Financials

Strengths

• Exceptional ROCE of 48% showing efficient capital utilization
• Attractive dividend yield of 6.2% for income investors
• Massive scale with Rs 2.7L crore market cap and dominant market position

Concerns

• Declining profit growth of -15.8% indicating operational challenges
• Contracting sales growth of -5.2% showing demand pressures
• Long-term sustainability concerns due to global shift toward cleaner energy

AI Analysis

Coal India is a Slow Grower company — a mature giant in India's coal mining sector with a massive market cap of Rs 2.7 lakh crores. The analysis suggests this stock appeals primarily to income-focused investors rather than those seeking rapid growth. Data indicates the company offers an attractive dividend yield of 6.2%, which is quite generous in today's market. The business generates exceptional returns with a ROCE of 48%, showing management efficiently uses invested capital. However, investors may consider the challenging growth picture — profit growth declined by 15.8% and sales contracted by 5.2%, reflecting the pressures facing the coal industry. Trading at a P/E of 8.9, the stock appears reasonably valued for a mature company. The DhanIQ Score of 6 out of 10 suggests steady but unspectacular performance. For investors seeking regular income, the high dividend yield combined with strong returns on capital may be attractive. The key question remains whether Coal India can maintain its dividend payments amid declining profits, especially as the world gradually shifts toward cleaner energy sources.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer