Stock Performance and Market Context
On 28 Jan 2026, Coal India Ltd. recorded an intraday peak of Rs.442, marking a 4.57% gain on the day. This new high represents a significant advance from its 52-week low of Rs.349.20, highlighting a strong upward trajectory over the past year. The stock has been on a consecutive two-day gain streak, delivering a cumulative return of 5.59% during this period.
Despite underperforming its sector marginally by 0.34% today, Coal India’s performance remains impressive within the broader Minerals & Mining industry, which itself gained 4.9%. The stock is trading comfortably above its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bullish momentum.
In comparison, the Sensex rose by 0.59% to close at 82,341.78, after a flat opening. While the benchmark index remains 4.64% shy of its own 52-week high of 86,159.02, Coal India’s outperformance is notable, having delivered a 19.15% return over the last year versus the Sensex’s 8.45%.
Fundamental Strength Underpinning the Rally
Coal India Ltd.’s rally to a new 52-week high is supported by strong long-term fundamentals. The company boasts an average Return on Equity (ROE) of 39.06%, reflecting efficient capital utilisation and profitability. Its operating profit has grown at an annualised rate of 16.99%, underscoring healthy earnings growth over time.
Financial stability is further evidenced by a low average Debt to Equity ratio of zero, indicating a debt-free balance sheet that reduces financial risk. The company’s valuation metrics remain attractive, with a Price to Book Value of 2.5 and a high dividend yield of 6.29% at the current price level, offering income alongside capital appreciation.
Institutional investors hold a significant 30.89% stake in Coal India Ltd., reflecting confidence from well-resourced market participants who typically conduct thorough fundamental analysis.
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Sector Leadership and Market Capitalisation
Coal India Ltd. remains the largest company in the Minerals & Mining sector, with a market capitalisation of Rs.2,60,499 crores. It accounts for 62.43% of the sector’s total market value, underscoring its dominant position. The company’s annual sales of Rs.1,40,712.05 crores represent 71.94% of the industry’s total revenue, further highlighting its scale and influence.
The stock’s mojo score stands at 74.0, reflecting a Buy grade upgraded from Hold on 27 Jan 2026. This upgrade signals improved market sentiment and recognition of the company’s fundamental strength and valuation appeal.
Coal India’s Return on Capital Employed (ROCE) for the half-year period is 36.52%, which, while the lowest in recent times, remains robust and indicative of efficient capital deployment.
Price Momentum and Technical Indicators
The stock’s current trading above all major moving averages confirms a strong technical setup. The 5-day, 20-day, 50-day, 100-day, and 200-day moving averages all lie below the current price, signalling sustained buying interest and positive momentum.
Over the past year, Coal India Ltd. has outperformed the BSE500 index across multiple time frames, including the last three years, one year, and three months, demonstrating consistent market-beating returns.
Despite a recent decline in quarterly profits—Profit Before Tax (PBT) fell by 40.22% to Rs.3,974.12 crores and Profit After Tax (PAT) dropped by 30.8% to Rs.4,354.28 crores—the stock’s valuation and dividend yield continue to support its market performance.
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Dividend Yield and Income Appeal
At the current price of Rs.442, Coal India Ltd. offers a high dividend yield of 6.29%, which is attractive for income-focused investors. This yield is supported by the company’s steady cash flows and strong earnings history, despite recent quarterly profit declines.
The stock’s premium valuation relative to peers reflects market recognition of its leadership position, scale, and consistent long-term growth prospects.
Summary of Key Metrics
To summarise, Coal India Ltd. has demonstrated:
- New 52-week high of Rs.442, up 4.57% on the day
- 19.15% return over the past year, outperforming Sensex’s 8.45%
- Strong ROE of 39.06% and ROCE of 36.52%
- Operating profit growth at an annual rate of 16.99%
- Debt-free balance sheet with zero average Debt to Equity ratio
- High dividend yield of 6.29%
- Market cap of Rs.2,60,499 crores, dominating the sector
- Institutional holdings at 30.89%
These factors collectively underpin the stock’s recent rally and its achievement of a new 52-week high, reflecting both fundamental strength and positive market dynamics.
Market Environment and Sector Dynamics
The broader Minerals & Mining sector has gained 4.9% recently, supported by improving commodity prices and demand fundamentals. Coal India Ltd.’s leadership within this sector has enabled it to capitalise on these tailwinds effectively.
While the Sensex remains below its 50-day moving average, the index’s 50DMA is above its 200DMA, indicating a cautiously optimistic market environment. Mega-cap stocks, including Coal India Ltd., have been leading the gains, contributing to the benchmark’s 0.59% rise today.
Conclusion
Coal India Ltd.’s ascent to a new 52-week high of Rs.442 marks a significant milestone, reflecting a combination of strong fundamentals, sector leadership, and positive technical momentum. The stock’s performance over the past year has outpaced the broader market, supported by robust profitability metrics, a debt-free balance sheet, and an attractive dividend yield. Despite some recent profit declines, the company’s scale and market position continue to underpin investor confidence and market valuation.
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