Rs 91,000 crore projects: This PSU company is to invest a huge amount in various projects!
The stock has a PE of 5.50x, an ROE of 89.69 per cent and a ROCE of 60 per cent.
Coal India Ltd, a major domestic coal company, plans to invest Rs 91,000 crore in various projects by 2025-26, which includes diversification and mine development. They will spend Rs 36,000 crore on coal gasification projects, Rs 46,000 crore on mining developers cum operators and other contracts and the remaining amount on other projects.
These projects will have a production capacity of around 127 MT. The company has also signed agreements with BHEL, GAIL and IOCL to promote indigenous technology and set up coal and lignite gasification projects. Coal India also plans to diversify into solar power, bauxite mines, aluminium smelters and power plants.
Coal India is the largest coal producer in the world and has a manpower of 2,48,550. The Coal Ministry has set an ambitious target of producing 1012 MT of coal by 2023-24.
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Coal India is a large-cap stock and a part of the S&P BSE 100 Index. The company reported amazing Quarterly Results and annual results. The company is almost debt free having a current debt of Rs 3,916 crore which is just 2 per cent of its market cap. The company has been maintaining a healthy dividend payout of 60.8 per cent with a dividend yield of 8.53 per cent.
As of March 2023, it can be noted that 4 mutual funds have chosen to invest in Coal India.
1) Life Insurance Corporation of India (11 per cent)
2) Cpse Exchange Traded Scheme (Cpse Etf) (3.03 per cent)
3) Hdfc Trustee Company Ltd. A/C Hdfc Balanced Advantage Fund (2.37 per cent)
4) Parag Parikh Flexi Cap Fund (1.18 per cent)
The stock has a PE of 5.50x, an ROE of 89.69 per cent and a ROCE of 60 per cent. On Friday, shares of Coal India plunged 0.06 per cent to Rs 237.35 per share. Investors should keep an eye on this PSU stock under the radar.