Coal CPSEs significant growth reflects in their market capitalization, CAPEX and profitability
Year of Exponential Growth of Coal CPSEs
Last one year, coal CPSEs have witnessed an exponential growth commensurate with their contribution to the economy of the country, which 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% |
