President of India-backed coal mining company has been declared as the preferred bidder for the Ontillu-Chandragiri REE exploration block

DSIJ Intelligence-1 / 17 Sep 2025/ Categories: Mindshare, Trending

President of India-backed coal mining company has been declared as the preferred bidder for the Ontillu-Chandragiri REE exploration block

The stock is up by 15.5 per cent from its 52-week low of Rs 349.2 per share and has given multibagger returns of 225 per cent in 5 years.

Coal India Ltd (CIL) has been declared the preferred bidder for the Ontillu-Chandragiri Rare Earth Element (REE) Exploration Block by the Ministry of Mines, Government of India. The block, which covers an area of 209.62 sq. km, has been awarded to CIL for the purpose of granting an exploration license. This domestic contract is subject to the Mines and Minerals (Development and Regulation) Act, 1957, with the exploration license deed to be executed within one year of the issuance of a Letter of Intent by the respective State Government.

About the Company

Coal India Ltd, a giant public sector company under India's Ministry of Coal, is the world's largest coal producer. Established in 1973 through the nationalisation of the coal industry, Coal India Ltd mines and produces coal, operating washeries to process it. Their primary customers are power and steel plants, but they also supply coal to cement factories, fertiliser companies, and brick kilns.

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In Q1FY26 results, the company reported net sales of Rs 35,842 crore and net profit of Rs 8,734 crore while in its FY25 results, the company reported net sales of Rs 1,43,369 crore and net profit of Rs 35,302 crore.

The company has a market cap of over Rs 2.40 lakh crore and has been maintaining a healthy dividend payout of 32 per cent. The shares of the company have a PE of 7x, an ROE of 39 per cent and an ROCE of 48 per cent. The stock is up by 15.5 per cent from its 52-week low of Rs 349.2 per share and has given multibagger returns of 225 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.