- 24 Mar 2025
- ICICIdirect Research
INDIA'S COAL PRODUCTION HAS CROSSED 1 BILLION TONS OF COAL OUTPUT IN YTDFY25
COALINDIA - 385 Change: -3.80 (-0.98 %)News: As per media sources, the overall India's coal production has crossed 1 billion tons of coal output in YTDFY25, with an increase of 5.24% YoY. Within this, Coal India production volumes has increased by only 1.3% YoY to 750 MT in this period.
View: The company’s coal production witnessed a muted growth in FY25 due to land issues and rake shortages in large mines. Moreover, the higher production from captive coal mines, which increased by 30% YoY to 174 MT in April’24 to Feb’25, has impacted Coal India’s sales volume. However, from the long-term perspective, the ambitious target of achieving 1000 MT of coal production, diversifying its product portfolio such as power, investments in new technology domains like coal gasification, inexpensive valuation, and a healthy dividend yield, support a long-term investment thesis for the stock.
Impact: Neutral