Rs 80,000 crore Capex: LIC-backed multibagger PSU stock reports the highest-ever profit and production

A stock that has not just performed but danced its way into the portfolios of investors, delivering a staggering 171.4 per cent return

Step into the world of black gold, where the heartbeat of progress echoes through the mines and caverns of Coal India Ltd. In the dynamic landscape of stock markets, one name has emerged as a shining star, a Maharatna in the realm of Public Sector Undertakings (PSUs) that has left investors exhilarated with its meteoric rise – Coal India Ltd.

Buckle up as we embark on a thrilling journey through the coal-laden veins of this powerhouse, headquartered in the cultural capital of India, Kolkata, under the watchful eye of the Ministry of Coal, Government of India. A stock that has not just performed but danced its way into the portfolios of investors, delivering a staggering 171.4 per cent return in the last three years. And the show is far from over – with a jaw-dropping 48.68 per cent Year-to-Date leap, it seems the bull run is only gaining momentum.

Heralding a miracle in the financial landscape, Coal India Ltd.'s H1FY24 performance reads like a saga of success. Picture this: the highest-ever H1 coal production, offtake, and overburden (OB) removal during the first half of the fiscal year 2023-24. If that's not enough, throw in the highest-ever total revenue from operations and net sales during the same period. Hold on, we're just getting started – record-breaking Q2 Profit Before Tax (PBT), Profit After Tax (PAT), and Net Sales have set the stage on fire. Interestingly, Life Insurance Corporation of India (LIC) has 11 per cent stake in the company.

But this is not a tale of resting on laurels; it's a story of ambitious peaks. Coal India Ltd. achieved a pinnacle in FY 2022-23 with a staggering 703.2 million tons of coal production, eyeing an even loftier target of 1 billion tons by FY 2025-26. The company is not merely mining coal; it's sculpting a vision of the future, enhancing its rail infrastructure to boost excavation capacities and aiming for a monumental 1-billion-ton evacuation capability.

Hold your breath as you discover the beating heart of India's power sector – Coal India Ltd. supplies a whopping 90 per cent of its production to power generation, with thermal power accounting for 83-85 per cent of the nation's total power output. In a bid to meet the ever-growing power demand, the company has set its sights on a colossal target – 1 billion tons of coal production by FY26-27.

Now, here's the nugget that has analysts and investors buzzing with excitement. In a recent conference call, it was revealed that Coal India Ltd. is poised to spend a staggering Rs 80,000 crore as capital expenditure over the next five years. This colossal investment is not just about numbers; it's a strategic move to enhance excavation capacities and drive cost synergies. It's a bold step toward ensuring that the bull run isn't just a sprint but a marathon.

As the dust settles and the coal dust clears, the question on everyone's mind is whether the bull run will persist in this Maharatna PSU stock. Will the black diamond continue to sparkle in the eyes of investors, or is there a plot twist waiting to unfold? Share your thoughts in the comment section, for in the world of Coal India Ltd., every opinion is a piece of the puzzle in this riveting financial saga.

Disclaimer: The article is for informational purposes only and not investment advice.