COALINDIA

Investment view Rating: Accumulate (suitable for income-oriented investors) Coal India remains one of India's strongest cash-generating PSUs. The investment case is driven by: High dividend yield Debt-free balance sheet Strong operating cash flows Near-monopoly in domestic thermal coal However, capital appreciation may be moderate because of: ESG concerns Long-term energy transition Limited earnings growth 1. Business strengths Advantages Produces around 80% of India's domestic coal. Government-owned enterprise with strategic importance. Supplies primarily to power companies through long-term fuel supply agreements. Very low financial leverage. Recent policy initiatives encouraging greater use of domestic coal in power plants support Coal India's demand outlook. 2. Financial quality Positives: Net debt free Very high operating cash flow Excellent return ratios Consistent dividend payments FY26 highlights: Revenue broadly stable. Full-year PAT declined due to one-off provisions and higher costs. Q4 showed a recovery in profitability. Total FY26 dividend: approximately ₹26.50/share.