Just adjust the e-auction coal price to normal levels and see the PE and ROE. Won’t look so appealing. Current coal prices are extremely high due to Russia-Ukraine conflict
I also believe that, current coal prices or the coal prices in past six months may not sustain. Coal India stock price has sharply corrected after dividend, but I believe that, it could be due to the concern about sustaining the current e-auction prices.
If any one has been analyzing Coal prices, and have some experience in relation between power demand and coal prices can throw more light, whether current ROE/ROCE looks sustainable or not. If not sustainable then upside in the stock looks limited tough lot of analysts are projecting share prices to go up in next few quarters.
I may be wrong because my knowledge in this area is limited, but holding the stock from lower levels due to good dividend yield.