Coal India is sitting on a pile of cash worth ~~ Rs.35000 Crores. In the near future, it hopes to tap into international markets and import cheap coal to bridge the demand and supply gap. Thats how it is going to utilize the 35000 crores.
And the money being raised is mainly for the setting up of washeries to cleanse the impure coal bettering its calorific value and hence price in the market too.
Invest having the above info in mind and also the fact that unlike Relinace Power which disappointed all, Coal India business is already up and running.
But also do keep your eyes open for the fact that we are all looking for alternate sources of energy (Green Energy).
And Coal India is one of the largest employers and there is a pay hike also in the near future for its employees.
However, there is no doubt that coal is a depleting source for thermal power in the world.
Concerns Major concerns for the company are: a) huge employee costs (~36% of the revenue in FY10), b) current issues related to forest and environment clearances for new mining projects that may delay the projects, c) issues related to Naxalites and mafia in its major operational area and d) infrastructure bottlenecks.
Investment Rationale:
Market leader with virtually no competitors Growing demand for coal to provide support Low cost of production Capacity expansion Scope for price hike
All, I have seen people like these who themselves will apply for IPO but will spread rumors so that they get more allotment... Sometimes i wonder "kuch log kitna gire hua hote hai".... Use your wisdom and decide ...
ye issue ka matlab hai aap lagao or pote ya nati (grand son ) khaye. listing gain bhul jao. relince power yad hai ya bhul gaye wo bhi bhav layega jab tak sabke pote ho jayenge.
Investor's Guide: Coal India looks to be good long-term bet
Now some Negatives: a) The company is constrained by the fact that it has been unable to scale up its operations and managed less than 6% CAGR growth in production during FY06-10, despite a huge demand- supply gap.
b) The company is constrained by the fact that it has been unable to scale up its operations and managed less than 6% CAGR growth in production during FY06-10, despite a huge demand- supply gap.
C) There is a significant scope for value addition through beneficiation, or washing of coal, which improves the burning quality of fuel apart from easing the transportation. However, none of this is going to come on stream before FY14. The company is developing 20 beneficiation facilities with a capacity of 111 million tonne annually which would take the share of beneficiated coal to 10% from 4% now by FY15. Washed coal is sold at nearly double the raw coal price and cost increase of about 30%, going by the current cost structure, offering huge improvement in margin expansion.
D)A proposal which is now doing the rounds that 26% of the profits of mining companies be set aside for those displaced due to their projects could be a dampener. If implemented, this will hamper the profitability of CIL, unless it is able to pass on the impact to the final consumer.
Recommendation
The stock is a good long-term bet with steady cash flows and limited risk to profitability. It may also turn out to be a high dividend paying stock, with huge cash reserves, minimal debt and limited cash requirement for its expansion plans for the next few years.
However, the company’s ability to accelerate earnings until FY14 is limited and it may not be able to record profit growth beyond the previous four years’ average of 12-13%. The offer price factors in the growth expectation, leaving not much room for short-term appreciation. Investors can subscribe to the issue keeping these factors in mind.
soooooooooooooooooooooory no more govt ipo saley pehley tax may lootey hai ab naya parampara layen hai ipo lakar looten ka issey to d company kay log bhi kam hi lootthey hai
150-60 ka mal 245 par aur machli (retail invester) phasaney kay liye 5percent discount. ch0r s@ley
Coal India Limited networth to jump by Rs 12K cr in 2012-13
KOLKATA: The networth of Coal India, which launched its IPO today, would witness a sharp jump of around Rs 12,000 crore to about Rs 36,000 crore (USD 8.4 billion) by 2012-13 when it adopts international accounting standards.
"Once we adopt IFRS accounting standard we will get back some Rs 12,000 crore from provision kept as 'overburden removal reserve' used in our traditional accounting system of our mines. This will boost our networth from 2012-13," CIL chairman Partha Bhattacharyya said.
At present, the net worth of Coal India is USD 6 billion (around Rs 25,000 crore), he said.
Moreover, the company will increase its profitability by another 50 per cent due to better realisation of coal price with increasing washed coal from 2016-17.
Being a government company, volume growth will be constrained and price growth uncertain. Yet it has the potential to attract many institutional investors
It is expected that there will be strong post-listing interest in the scrip even at higher P/E multiple due to strong institutional (especially FII) demand as it is the only Indian stock which gives exposure to the Indian coal industry and the scrip's likely inclusion in leading Indian and global indices. Thus scarcity premium and index company premium can spice up the scrip post listing.
Capital Market reporting above para is a rare phenomenon at least in last 5-6 years.
But Gem IPO Finder analysis of demand and supply in the day of listing is also important.
Capital market has also recomended IL&FS Transport in its capital Corner quoting the same at steep discount of 5.5 times forward PE For FY 2012.
I am myself great friend of the same and had acquired it post listing at around 280-285 levels. Really a good bet at these levels.
Few months back CM (Capital Market) has also recommended Cox and Kings at around 475 levels as fundamently strong share.
AB PYARE HO JA TAIYAAR COAL AAYA HAI ABKI BAAR BAHUT PADEGI MOTI MAAR DIN ME DIKHENGE TAARE CHAAR
MAIN CHAHE ISAME APPLY KAROON MAIN CHAHE USAME APPLY KAROO ... MERI MARJI..... MAIN CHAHE IBPOWER MAIN PITOON MAIN CHAHE CANTABILE MAIN PITOON... MERI MARJI...... MAIN RUPAIYE KI ATHANNI KARWA DOON....... MERI MARJI.........
1119. Are ullu ke patthe,gade, andhe, tv nahi dekhata, paper nahi padhata kya? muh uthakar chala aya massege post karne. saale tere jaise logo ne ch.garh ko ganda kar rakha hai. chal nikal yahan se, phir POST mat karna.