Consider this. Last one year, coal CPSEs have witnessed an exponential growth commensurate with their contribution to the economy of the country. The growth has been reflected in their Market capitalization, CAPEX and profitability. 

Market Capitalization

Coal CPSE’s CIL & NLCIL have witnessed phenomenal growth in their core operation. This has boosted investors confidence in these PSUs stocks thereby leading them to their all time high prices. Thus, the coal PSU’s have turned multi bagger during last one year and have rewarded its investors with stupendous returns both in dividend yield as well as capital appreciation. The same is substantiated by the market capitalization comparison over past few years herein below:

 

 

 

 

 

 

 

 

Market Cap (in Rs. Cr)

Sl no.

Name of the company

Market Cap as on 01.04.2021

Market Cap as on 01.04.2022

Market Cap as on 01.04.2023

Market cap as on 06.02.2024

Market cap as on 13.02.2024

Market cap as on 19.02.2024

Market Price as on 19.02.2024

% inc/dec in market cap since 2021

1

CIL

81483.45

112808.74

131666.69

269835

278462

298121

483.65

265.87%

2

NLCIL

7064.78

8673.41

10697.9

38832

33057

35172

253.65

397.85%

 

Note: Both CIL & NLCIL have touched their all-time high prices of Rs. 487.60/share & 293.75/share during this year

 

CAPEX

Coal CPSE’s have been serving as the fulcrum of economic activities and capacity building by sperheading the CAPEX. Over the past 3 years coal CPSE’s have given tremendous impetus to economy’s ecosystem by doing considerable amount of Capex as follows;

Year

Capex

(in Rs. Cr)

YoY growth

2020-21

17474.91

16.52%

2021-22

19656.42

12.48%

2022-23

23400.22

19.05%

 

Profitability

Coal PSU’s have scripted new heights of profitability in last 3 years and has shown outstanding results. Same is substantiated by following details regarding Profit before Tax earned by Coal PSU’s

 

Year

PBT

(in Rs Cr)

YoY Growth (%)

2020-21

20508.50

 

2021-22

27907.00

36.08%

2022-23

42799.17

53.36%

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