Coal CPSEs: A Year of Remarkable Growth and Investor Rewards

The last one year has been productive for the coal CPSEs (Coal India Limited and NLC India Limited), as their market capitalisation, CAPEX, and profitability have all increased remarkably in line with their contributions to the national economy. Coal CPSEs, CIL and NLCIL have shown remarkable growth. Due to the increased investor confidence in these PSU equities, their prices have reached an all-time high.

As a result, over the past year, coal PSUs have become multi-baggers, rewarding their investors with tremendous returns on both capital appreciation and dividend yield. By spearheading the CAPEX, coal CPSEs have been the centre of economic activity and capacity building. During 2022-2023, both CPSEs have witnessed capex growth of ~19.05% to ₹23,400.22 crore. Coal PSUs have touched new heights of profitability during 2022-23 and recorded a growth of ~53.36% and reported profit before tax of ₹42,799.17 crore.

About Coal India Limited

Coal India Ltd. is primarily involved in the mining, production, and operation of coal washeries. The steel and power industries are the company’s main clients. Cement, fertilisers, brick kilns, and other related industries are among the consumers from other sectors. CIL ranks among the biggest employers in the business world and is the world’s largest producer of coal.

About NLC India Limited (NLCIL)

NLC India is engaged in the business of mining lignite and generation of power by using lignite as well as Renewable Energy Sources. NLC operates lignite mines and thermal power stations in Neyveli, Tamil Nadu, and Barsingsar, Rajasthan. It sells power to the state utilities of Tamil Nadu, Rajasthan, Andhra Pradesh, Kerala, Karnataka, and the Union Territory of Puducherry.

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.