Coal India (COALINDIA)

FairStock Score: 80/100 — HIGH CONVICTION

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Coal India through Graham’s lens: a ₹2.51 lakh Cr giant at ₹407.10, earning ₹7,166 Cr in the latest quarter on sales of ₹34,924 Cr. The balance sheet is the first attraction: debt/equity only 0.12, ROE 28.24%, ROCE 48.04%, and FCF ₹19,124 Cr. That is a real cash machine. A 5.16% dividend yield pays me to wait, and promoter holding of 63.13% suggests a stable ownership anchor. The moat is not a consumer brand; it is scale, resource position and India’s coal dependence. Recent sales growth of 15.15% and profit growth of 32.09% are impressive, but the 5-year revenue CAGR of 8.33% tells me this is not a fast grower. At P/E 8.05 and P/B 2.11 against book value ₹193.28, the headline valuation looks undemanding. Graham Number ₹431.71 is just above the price, yet the reported margin of safety is only 0.25%, so I am not being paid much for the risks. Those risks are real: EV/EBITDA of 40.74 looks stretched for a coal business, DCF intrinsic value of ₹108.75 is far below market, current ratio 1.04 is tight, and Altman Z-score 2.43 sits in the grey zone. Piotroski F-score 6/9 shows decent but not elite financial momentum. FairStock score 80/100 signals high conviction, but I must remember coal is cyclical. I would treat Coal India as a stalwart dividend play, not a bargain with a wide margin of safety. Buy only if the dividend and FCF remain durable, and coal demand does not structurally fade.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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