About CIL
Coal India Limited (CIL) is an India-based holding company. The Company is a coal mining company, which is engaged in the production and sale of coal. The Company offers products, including Coking Coal, Semi Coking Coal, Non-Coking Coal, Washed and Beneficiated Coal, Middlings, Rejects, Coal Fines/Coke Fines, and Tar/Heavy Oil/Light Oil/Soft Pitch.
Its Middlings are used in power generation, brick manufacturing units and cement plants. The Washed and Beneficiated Coal products are used in the manufacturing of hard coke for steel making and power generation. Its Semi Coking Coal products are used as blend-able coal in steel making, merchant coke manufacturing and other metallurgical industries.
Its Non-Coking Coal products are used for cement, fertilizer, glass, ceramic, paper, chemical and brick manufacturing, and for other heating purposes. CIL operates through approximately 82 mining areas spread over eight provincial states of India.
Performance - 5 years
The performance for the past 5 years has been pretty bad. Long term investors who bought the scrip around 300 Levels 5 years ago are still sitting on a loss > 50%
The CMP of 123 is pretty close to 52 week low of 119 which indicates further correction is not ruled out.
The scrip is likely to under perform and is a clear avoid.
Raghav
Equity Analyst
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