Company Profile
Coal India Limited, commonly known as CIL, is an Indian state-owned public sector undertaking (PSU) owned by the government of India. Founded in 1975, CIL is based in Kolkata and is the world’s largest state-owned producer of coal. CIL is also India’s ninth largest employer, employing almost 272,000 people approximately. CIL accounts for around 82% of India’s total coal production. In April, 2011, the government of India granted CIL the status of ‘Maharatna’, one of thirteen such entities in the country.
History of Coal Industry and Coal Mining Sector in India
lUntil 1956, coal mining in India was mainly owned and operated by the private sector. However, in 1956, the Government of India set up its own coal company, National Coal Development Corporation (NCDC). The coal mines operated by the Indian Railways formed the core of NCDC. The objective of this company was to meet the rapidly increasing energy requirements of the country in order to support the rapid industrialization that the Government of India was pursuing through the Five-Year Plans.
lIn 1971, all 214 coking coal mines and 12 coking-ovens operated by the private sector in the country were nationalized by the government of India, with the exception of those held by the TISCO, IISCO and others for captive use. In order to improve the organization and operational efficiency of the coal sector, Coal India Limited (CIL) was established. Thus, CIL started functioning in 1975 with 5 subsidiary companies under it. These were Bharat Coking Coal Limited (BCCL), Eastern Coalfields Limited (ECL), Central Coalfields Limited (CCL), Western Coalfields Limited (WCL), and Central Mine Planning & Design Institute Limited (CMPDIL). In due course of time, 3 more companies were formed under CIL by carving out certain areas of CCL and WCL. These were Northern Coalfields Limited (NCL), South-Eastern Coalfields Limited (SECL), and Mahanadi Coalfields Limited (MCL).
Company Perspective and Review
Coal India’s stock price has been oscillating for the past few months, following a bullish trend. The stock attempted a breakout in June 2023, but failed to breach the 200-day EMA. The company has zero debt. For the year ending March 2023 Coal India has declared an equity dividend of 242.50% amounting to Rs. 24.25 per share. At the current share price of Rs.283 this result in a dividend yield of 8.56%. The company has an acceptable return on equity and capital employed ratio, good dividend track report with a BUY signal by the Moving Averages and Technical Indicators.
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