Stock markets have been crashing across the globe in last few months. They rise for some time but usual direction have been downward. With no improvement in national and international geo-political and economical situation, expecting a steady upward movement in next six months won’t be a good pick.
These are very good time to build portfolio for long term. Lot of good stocks are available at cheaper prices and long term investors can take this opportunity to build their portfolio. Coal India is one of finest stock in this category.
Coal India is the world largest coal producer and reserve holder. It is a Maharatna company and currently operate around 471 mines in India. They operate at a 50 per cent discount rate of international bench price of coal so chances of their getting affected by any price fall are minimal.They basically deals in thermal coal and coking coal. The demand is more than supply.
They been increasing their international operations also. With the current amount of reserves, coal india can keep producing coal for next 51 years, if they produce it at the current levels. Coal India at the moment seems to be a excellent buy for next five years. One can start buying systematically and accumulate this stock for long term.
It is currently trading at Rs 379.15 at NSE and can yield very high returns in next five years.
| Valuation | COAIND |
| PE (x) | 19.18 |
| PB (x) | 7.17 |
| EV to Sales (x) | 3.27 |
| EV to EBITDA (x) | 10.64 |
| Dividend Yield (%) | 1.03 |
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