Synopsis: Coal India Limited has secured a new domestic project in energy storage, marking a step beyond coal operations and showing its gradual shift toward newer power-related opportunities.
The shares of this large cap company majorly engaged in mining and production of Coal operating Coal washeries with major consumers of the company being power, steel sectors and many more were in focus after it secured Rs. 400 Crores worth of orders.
With the market capitalization of Rs. 2,96,705 Crores, the shares of Coal India Ltd were trading at around Rs. 481 per share which is 2 percent discount from its 52-week high of Rs. 491 per share and is trading at a P/E of 9.54 whereas industry P/E stands at 17. The stock has delivered a dividend yield of 5.5%
News
Coal India Limited has received a Letter of Award from GRIDCO Limited to set up a 320 MWh (80 MW for 4 hours) battery energy storage system in Odisha. The project will be developed across two clusters Padampur and Bolangir under one cluster at a tariff of Rs. 3.04 lakh per MW per month, and Bhatli and Basta under another at Rs. 3.05 lakh per MW per month.
The total estimated project cost stands at around Rs. 400 crore, and it is expected to be completed within 18 months from signing the agreement. The contract requires submission of documents within 20 days and a performance bank guarantee. This is a domestic and independent deal, not linked to any related party.
The project focuses on storing electricity for use when needed, which is becoming important with changing power demand. For Coal India, this marks a clear step into energy storage, showing its effort to slowly expand beyond coal and take part in new areas of the power sector and the stock is expected to be in focus on Monday’s trading session.
Financials
Coal India Limited is one of the world’s largest coal producers, supplying fuel mainly to power, steel, and cement sectors. It operates through multiple subsidiaries across India and plays a key role in meeting the country’s energy needs. The company has a wide mining network and strong distribution system, and is also exploring cleaner energy areas like solar, thermal efficiency, and battery storage projects.
Year on Year analysis: Revenue from operations has increased from Rs. 37,825 Crores to Rs. 46,490 Crores, up 23 percent. Operating profit has increased from Rs. 11,790 Crores to Rs. 12,673 Crores, up 7.4 percent and net profit has increased from Rs. 9593 Crores to Rs. 10908 Crores, up 13.7 percent
Quarter on Quarter analysis: Revenue from operations has increased from Rs. 34,924 Crores to Rs. 46,490 Crores, up 33 percent. Operating profit has increased from Rs. 9331 Crores to Rs. 12673 Crores, up 35.8 percent and net profit has increased from Rs. 7166 Crores to Rs. 10908 Crores, up 52 percent
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