Coal India's Exemplary Performance: Beating Markets, and Unveiling 20% Upside

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Coal India's Exemplary Performance: Beating Markets, and Unveiling 20% Upside

By Aayush Khanna

In a commendable feat of operational prowess, Coal India Ltd (NS: COAL ) (CIL) has not only met but surpassed expectations, producing an impressive 460 million tonnes (MTs) of coal till November in the current financial year. With a remarkable year-on-year growth of 11.5%, exceeding the annual target rate of 10.2%, CIL has showcased its commitment to sustained excellence, witnessing a substantial surge of 47.4 MTs compared to the same period last year.

All seven subsidiaries contributing to CIL's coal production have demonstrated growth, with notable achievements by BCCL and NCL, both meeting their progressive targets. The month of November 2023 alone witnessed a robust coal output of 66 MTs, marking an 8.7% growth over the 60.7 MTs reported in November 2022.

An intriguing dimension is the noteworthy contribution from CIL's top 35 mines, each with a capacity of 5 MT/Year or more. These mines collectively accounted for approximately 75% of the total output during April-November 2023, underscoring their pivotal role and alignment with CIL's strategic monitoring.

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Despite already delivering a market-beating 51% return in the last year, a remarkable feat for a large-cap company, CIL still presents a decent upside potential of 20%, reaching INR 415 from the current market price of INR 346. This financial performance underscores CIL's pivotal role in meeting the country's coal demand while surpassing operational targets, making it a notable player in the sector.

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