Even though Coal may remain a major energy source for India for the next decade or so, but it seems Coal India will continue to loose its market share. From the latest quarterly results - both FSA Volumes and E-Auction Volumes dropped; E-Auctions prices also dropped.
- Volume drop shows competitive intensity increasing; NTPC and other customers using their captive mines for their coal requirements.
CIL may continue to give good dividend yield and unless it is able to grow in other areas (other critical minerals - rare earths, etc) using its mining expertise, i fear it will just act like a bond, and stock value maybe stuck in a range till then..