Coal India Ltd (COAL) Earnings: July Sales Decline 11%, Production Down 16% Year-Over-Year

Coal India Ltd on Smartkarma

Analyst coverage of Coal India Ltd on Smartkarma reveals a cautious sentiment towards the company’s performance. Rahul Jain‘s report titled “India Coal Sector Q1 FY26: Private Miners Surge, CIL Stumbles” highlights a drop in CIL’s output by 8.5% in June due to various challenges, while private mines show growth. The outlook remains cautious unless there is a significant improvement in execution in Q2 and beyond.

Another report by Rahul Jain, “Coal India: Volume Strength Intact, Profitability Headwinds Emerging,” points out that Coal India reported flat EBITDA in FY25, with profitability impacted by lower e-auction prices and NSR pressures. Despite the company’s record-high volumes, margin risks exist, especially with challenges like weaker e-auction pricing. Valuations appear cheap, but concerns about margin risks and operational leverage are noted.

A look at Coal India Ltd Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Coal India Ltd, a company that produces and markets coal along with offering consulting services, is showing promising signs for the long-term. Based on the Smartkarma Smart Scores, the company has scored high in Dividend and Resilience, with a perfect score of 5 in both categories. This indicates that the company is strong in both paying dividends to investors and handling economic uncertainties.

Additionally, Coal India Ltd has scored well in Value and Growth, with scores of 4 in both categories. This suggests that the company is deemed undervalued relative to its fundamentals and has potential for growth. However, the company has a lower score of 2 in Momentum, indicating that it may not be performing as strongly in terms of recent price movements. Overall, with solid scores in key areas like Dividend and Resilience, Coal India Ltd appears to be a stable investment option for the long run.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
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