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Coal India and NTPC are valued in different ways.
Coal India is valued on discounted cash flow and NTPC on excess return, because the two businesses do not work the same way. Below, each is set out on its own record and its own value drivers; the two fair values sit in the full valuations.
- Valuation method: Coal India on discounted cash flow; NTPC on excess return.
- Size: the two are worth roughly the same on the stock market.
- Record: On revenue the two have grown at much the same pace: Coal India compounded at about 9% a year (FY2018–FY2026) and NTPC at about 10% (FY2019–FY2026).
- What to watch: volumes at Coal India; regulated equity growth at NTPC.
| Coal India | NTPC | |
|---|---|---|
| Price | ₹404 | ₹319 |
| Market cap | ₹2.49L Cr | ₹3.09L Cr |
| P/E | 8.0 | 10.4 |
| P/B | 2.09 | 1.52 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Discounted cash flow | Excess return |
01Two businesses
Most of India's coal, from one company
Coal India is the world's largest coal producer by output and is majority-owned by the Government of India. Through subsidiaries such as Mahanadi Coalfields, South Eastern Coalfields and Northern Coalfields, it produces roughly three-quarters of the coal mined in India.
Coal, regulation and a renewable future
NTPC is India's largest power generator and is majority-owned by the Government of India. Most of its capacity is coal-fired, with gas, hydro and a fast-growing renewable portfolio held largely through NTPC Green Energy, which was listed separately in November 2024.
02The records side by side
On revenue the two have grown at much the same pace: Coal India compounded at about 9% a year (FY2018–FY2026) and NTPC at about 10% (FY2019–FY2026). By revenue the two are of broadly similar size. Coal India kept 18.5% of revenue as net profit in FY2026; NTPC kept 14.7% of revenue as net profit in FY2026.
Full ten-year tables and charts are on each company's page: Coal India · NTPC.
03What each price assumes
Work backwards from each share price and you can see what buyers are taking for granted — the rate each company must sustain to justify what it costs, against what its own record supports.
04What decides each one's value
- VolumesIndia's power demand still leans heavily on coal, so output has kept growing.
- E-auction premiumsCoal sold at auction earns far more than contract coal; the premium swings with demand and imported-coal prices.
- Regulated equity growthEvery rupee of approved capex adds to the base on which NTPC earns its allowed return.
- Plant availabilityFull fixed-cost recovery depends on keeping plants available to run.
05What could go wrong
- Energy transitionOver the long term, renewables will reduce coal demand.
- Private and captive miningMore coal mined by others reduces Coal India's share.
- Regulatory changesA lower allowed return in a future tariff period would reduce value directly.
- Coal's long-term futureThermal plants may run less as renewables grow.
06Which is better value?
Sign in free to see which trades further below its worth
- ✓Both fair values per share — each on the method that fits the business
- ✓Every step of both workings — growth, margins and cost of capital, with sources
- ✓Bull, base and bear cases — for each company
- ✓Downloadable reports — the full write-up for each, yours to keep
08Questions people ask
Is Coal India or NTPC better value?
That turns on how far each share trades from its estimated fair value. Both figures, with every step of the working, are in the full valuations, free to view once you sign in. On the public numbers, Coal India trades at 8.0 times earnings and 2.09 times book value, and NTPC at 10.4 times earnings and 1.52 times book value — but multiples alone mislead when two businesses work differently, which is why each is valued on the method that fits it.
What is the difference between Coal India and NTPC?
Coal India is the world's largest coal producer by output and is majority-owned by the Government of India. NTPC is India's largest power generator and is majority-owned by the Government of India.
Are Coal India and NTPC valued the same way?
No. Coal India is valued on discounted cash flow and NTPC on excess return, because forcing one model onto both would misstate at least one of them.
What does today's price assume for Coal India and NTPC?
Worked backwards from the share price, Coal India needs about 0% growth and NTPC about 12.4% return on equity, against 10% and 14.1% in their own records.