Wednesday, August 17, 2011

CIL is # 1

CIL is # 1 in market cap.
It has dethroned RIL who had dethroned ONGC in 2007.

As of today, Reliance Industries' market cap stands at Rs 248,662.36 crore and that of Coal India stands at Rs 250,728.08 crore.

The world's largest coal miner had a production target of 460.5 MT for 2010-11, which was revised to 440.2 MT

What does this news mean?
It implies that with CIL being # 1 in the sensex, its weightage will increase and all index MF and ETF will have to purchase it as per norms.
Please correct me if I am wrong here.

See MF holdings:
http://www.moneycontrol.com/mf/user_scheme/mfholddetail_sec.php?sc_did=CI11

Many index funds are missing. They need to buy which implies stock will be in demand.

Whats the future?

According to NC Jha, CIL's products are sold @ 50% cheaper prices than imported coal.
If the coal is washed, the company can get better rates for their coal.
For this the company has planned for 20 washeries which will gradually come onstream in a couple of years.

Waheries news: http://www.constructionupdate.com/CMS/Newsletter/NewsFiles/39739.html

As per moneycontrol:

Coal India in Q1'12:
Maharatna firm Coal India reported a 64% jump in the consolidated net profit at Rs 4,143 crore for the first quarter ended June 30.
The company had posted a consolidated net profit of Rs 2,525 crore in the April-June period of 2010

This at 50% cheaper price. Imagine the extent when they sell washed coal!!!

Prediction?
From the look of it, this company has huge potential.
Its in my outlook for long term investment.

What do you think?

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