Coal India: What is going on?

[teetotaller]

Coal India seems to be in a slump. With the stand-alone P/E still good at 16-ish
Well, not good, but still.....
The stock is at a lifetime low as of this week.

Also, the Coal Industry the world over is suffering greatly. Does anyone here think this may be the beginning of the end of Coal as we know it? Because the Company accounts for 80% of India's coal, and being a Govt. co. will survive probably anything. It also seems to have decent fundamentals, though media says it is likely to miss its 2017-18 targets.

What do you guys thikn about this Co. in the long term?
I'm honestly of the opinion that Coal isn't going anywhere for at least 5 years... and the stock is so low because of panic selling. Is this the right time to pick up this stock? The dividend yield at this price is quite tempting too.

Would love to hear everyone's opinion on coal India and the Coal industry and its long-term outlook.

 

[DayTrader007]

I still have happy memories when I invested in their IPO 2010. They gave 5% discount to retail investors. Almost all financial institutions gave 5 star to their IPO. Issue price was Rs. 245 and on first day of opening it was at high Rs. 350. Nice Profit.

Hmm .. what to do now...? They are at Lowest.

I will stick to them as they give High Dividend Yield. There was strong support at 250 which tasted in Aug 2013 and Feb 2014 But now they breached it. I still think they get Reversal now.

It is good company and whoever having belief in India's Growth Story should invest in it. Even they go further low from here anyone can buy using SIP.

 

[iTrade]

I think demand for COAL in the industry needs to be studied and whether that demand is being replaced by some other alternative source of energy. The conclusion from that study needs to be factored in while investing in coalindia

 

[teetotaller]

Right.....
I've been doing some reading on the so-called "war on coal" in the US. Seems in late 2016, Coal india suffered heavy losses due to some natural causes too.
The War on coal...well, I guess I'll just have to spend a few holidays studying demand now. I was going to be free on 15th August. Oh well....

 

[simplebuthard]

If you have already enough amount invested in high and fast growth stocks like bajaj finance, maruti, yesbank, hdfcbank etc, and still having more cash to invest then go for bottom fishing in coal India for dividend reasons.

Else invest in a high growth stock for a year or two, your money may be doubled or tripled. Then invest that amount at that time in coal india. By this way, you would be able to invest double of what you can afford now in Coal India. Coal india prices are going to be same or down or little up. thats it.

 

[teetotaller]

I don't have anything invested in those. But all the stocks you mentioned are overpriced. I did want to buy Maruti in 2015 when it was 3700, but I didn't have the money to invest saved up. No point buying it now in my opinion... look at the P/E...it's scary to buy that stuff right now for investing.

I get your assessment of Coal India not going far up in the near future. I also did some reading and found that global demand for coal in getting less and less, while Coal india's production capabilities have increased. seems we are not going to be able to export much coal.

 

[simplebuthard]

Overpriced? Those stock companies posting 20% + increase in profits in quarterly results and the stocks are following the price.

Instead of investing in the companies which grows in profits, putting our money in such falling stocks, a sure idea to get our money stuck in stock markets.

If still you think those stocks based on prices, you can look for growth stocks in 3 digit prices also.

As I am not a sebi analyst, I think recommending stocks not advised. I leave you all to your own analysis.

 

[teetotaller]

I see your point. They've been posting great profits, no doubt. But isn't a stock still in a bubble?

Everyone is running after that stock, and hence the P/E is absurdly high. What do you think about that. Open to learn new things here.

Edit: Looking at the way the Coal Industry is headed globally, I'm very VERY skeptical since making this post of buying Coal India. the only reason it's still on my mind is the dividend it offers. Is it going to survive.... and keep paying a decent dividend?