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Coal India just gave investors two reasons to cheer: strong Q4 results and word that it's taking two subsidiaries public. That combo sent the stock up nearly 3 per cent today, making it one of the day's top Nifty gainers.
For a PSU that's usually more about dividends than drama, this is a rare spark.
So, what's happening?
The stock jumped to Rs 414.30, a 2.88 per cent gain for the day. Trading volume was strong—over 5 million shares changed hands.
The surge came after a 12 per cent year-on-year jump in Q4 profit (Rs 9,593 crore). On top of that, the company is planning to file draft IPO papers for two subsidiaries: Bharat Coking Coal (BCCL) and CMPDI, a mine design and exploration outfit.
Why it matters
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Profits are solid
Revenue is up, costs are under control, and margins are holding. Plus, the company declared a final dividend of Rs 5.15 per share, taking total FY25 payouts to Rs 25.25. That's not loose change. -
IPO play is exciting
Coal India hasn't spun off a unit in years. So this move signals the start of some long-awaited value unlocking. IPOs for BCCL and CMPDI could draw fresh investor interest—and help Coal India clean up and modernise. -
PSU stocks are hot
High-dividend public sector stocks are back in fashion. Coal India, with a yield over 6 per cent, is right in the sweet spot.
What does Coal India actually do?
Coal India is the country's largest coal miner—and one of the biggest in the world. It digs up over 80 per cent of India's coal, powering everything from thermal plants to industry. It runs through a web of subsidiaries like Mahanadi Coalfields, SECL, and more.
But now, it's looking to shake things up with IPOs.
Snapshot of the numbers
| Metric | Value |
|---|---|
| Market cap | Rs 2,48,296 cr |
| Revenue (TTM) | Rs 1,40,742 cr |
| Net profit (TTM) | Rs 35,358 cr |
| ROE | 52.1 per cent |
| ROCE | 64.5 per cent |
| P/E ratio | 7 |
| P/B ratio | 2.5 |
| Industry P/E | 16.53 |
| EV/EBITDA | 3.9 |
| Dividend yield | 6.6 per cent |
| Debt to equity | 0.1 |
| EPS | Rs 57.4 |
Value Research Online rating
-
Overall:
4/5
-
Quality:
10/10
-
Growth:
6/10
-
Valuation:
7/10
- Momentum: 2/10
Final word
The fundamentals are strong, and if the IPOs go well, the re-rating story has legs.
For new investors, this isn't a high-growth tech play—but it's a steady cash machine. If you're chasing yield with a side of upside, this could be worth a closer look.
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Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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