President of India-Backed Coal Mining Company Signs MoU with IREL (India) Limited
The stock is up by 4.40 per cent from its 52-week low of Rs 368 per share and gave multibagger returns of 150 per cent in 3 years.
Coal India Limited (CIL) and IREL (India) Limited, a public sector undertaking under the Department of Atomic Energy, Government of India, have entered into a Non-Binding Memorandum of Understanding (MoU) on January 6, 2025, at IREL's headquarters in Mumbai. The purpose of this MoU is to establish a framework for cooperation and collaboration between the two entities in the development (mining/extraction/refining, etc.) of mutually agreed-upon critical mineral assets. This includes mineral sands and rare earth elements (REE). The MoU outlines plans for acquiring assets or sourcing raw materials both domestically and internationally.
About the Company
Coal India Ltd, a giant public sector company under India's Ministry of Coal, is the world's largest coal producer. Established in 1973 through the nationalization of the coal industry, Coal India Ltd mines and produces coal, operating washeries to process it. Their primary customers are power and steel plants, but they also supply coal to cement factories, fertilizer companies, and brick kilns.
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The company has a market cap of over Rs 2 lakh crore and has been maintaining a healthy dividend payout of 51.8 per cent. The shares of the company have a PE of 6.4x, an ROE of 52 per cent and an ROCE of 64 per cent. The stock is up by 4.40 per cent from its 52-week low of Rs 368 per share and gave multibagger returns of 150 per cent in 3 years. Investors should keep an eye on this Large-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.