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Coal India’s Shares Skyrocket After Impressive Profit Surge

09 May 20233 mins read by Angel One
The stock has a price-to-earnings (PE) ratio of 5.50x, return on equity (ROE) of 89.69% and return on capital employed (ROCE) of 60%.
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On Tuesday, shares of Coal India surged 1.50 per cent to Rs 236.40 per share from its previous closing of Rs 232.90. 

Coal India Limited (CIL) has reported an astounding 62% growth in its profit after tax (PAT) for the fiscal year 2022-23, amounting to Rs. 28,125 crore, a substantial increase from Rs. 17,378 crore recorded in FY 2021-22. The company’s profitability was driven by higher volume sales and increased premiums in e-auctions. 

In Q4 FY 2022-23, CIL achieved a profit before tax (PBT) of Rs. 7,642 crore and a PAT of Rs. 5,528 crore. This remarkable performance was the result of strategic initiatives taken by the company. 

CIL’s board has announced a final dividend of Rs. 4 per share, reflecting the company’s robust financial standing. The net sales for both Q4 and the entire fiscal year 2022-23 were the highest ever recorded. Net sales in Q4 FY 2022-23 amounted to Rs. 35,161 crore, showing a 17% increase compared to Q4 FY 2021-22. For the full fiscal year, net sales stood at Rs. 1,27,627 crore, marking a significant jump of 27% compared to the previous fiscal year. 

Coal India Ltd, a major domestic coal company, has announced its ambitious investment plan of Rs 91,000 crore for various projects by 2025-26. To promote indigenous technology and foster innovation, Coal India has entered into agreements with BHEL, GAIL and IOCL

Being a part of the S&P BSE 100 Index, Coal India is considered a large-cap stock. Remarkably, the company maintains a low debt profile, with a current debt of only Rs. 3,916 crore, which accounts for just 2% of its market capitalization. Moreover, CIL consistently maintains a healthy dividend payout of 60.8% with a dividend yield of 8.53%. 

With a price-to-earnings (PE) ratio of 5.50x, return on equity (ROE) of 89.69% and return on capital employed (ROCE) of 60%, Coal India showcases strong financial metrics. On Monday, the company’s shares experienced a marginal decline of 0.06%, reaching Rs. 237.35 per share. 

Investors are advised to closely monitor this hidden gem within the PSU sector, as Coal India demonstrates the potential for future growth. 

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