India’s Coal Sector Achieves 10.2% Surge in May 2024: Check the Stocks Performance

The coal sector in India has emerged as a cornerstone of industrial expansion, showcasing robust growth and significant contributions to the nation’s economic landscape. According to the latest data from the Index of Eight Core Industries (ICI) released by the Ministry of Commerce & Industries, the coal industry has demonstrated the highest growth rate of 10.2% in May 2024. This surge underscores its pivotal role alongside other core industries such as electricity, cement, and steel.

The Index of Coal Industry, part of the ICI, has risen to 184.7 points in May 2024 from 167.6 points during the same period last year, reflecting a remarkable year-on-year increase. Moreover, the cumulative index has shown an impressive 8.9% rise during April to May 2024-25 compared to the corresponding period in the previous year. These figures highlight not only the sector’s resilience but also its capacity to drive overall industrial growth.

Fueling this growth is the substantial increase in coal production, which reached 83.91 million tonnes in May 2024, an impressive 10.15% jump from the previous year. This surge in production is pivotal in meeting the burgeoning energy demands of various sectors, from manufacturing to power generation, thereby bolstering the country’s energy security.

Performance of Coal Sector Stocks

Coal India Ltd informed in a stock exchange filing that the company raised its coal

production to 189.3 million tonnes in the first quarter ending, June FY 2025. In May 2024, the company reported a production of 64.4 million tonnes, reporting a growth of 7.5%, compared to the same period last year.

As of July 5, 2024, the company’s 5-yr CAGR is 14.29%. The share price of Coal India Ltd opened at ₹489.50, touching the day’s high at ₹491.95, as of 12:42 PM on the NSE.

NLC India Limited has announced a 5.27% increase in coal production for Q1 FY 2024-25, reaching 28.46 LT compared to 21.04 LT in Q1 FY 2023-24. As of July 5, 2024, the company’s 5-yr CAGR is 32.39%.

As of July 5, 2024, the company’s 5-yr CAGR is 14.29%. The share price of NLC India Ltd opened at ₹264.70, touching the day’s high at ₹268.30, as of 12:44 PM on the NSE.

Conclusion

The performance of the coal industry is crucial, particularly considering the vision of Atmanirbhar Bharat (Self-reliant India). By ramping up coal production, India not only strengthens its domestic energy resources but also reduces dependence on imports, aligning with broader national objectives of self-sufficiency.

Looking ahead, the outlook for India’s coal sector remains optimistic, supported by ongoing policy reforms and proactive measures by the Ministry of Coal. These efforts are geared towards sustainable growth, balancing environmental considerations with industrial requirements.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.