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Today's prices ask more of Tata Steel than of Coal India.
At current prices, buyers of Coal India are assuming about 0% growth against 10% in its own record; for Tata Steel it is 6% against 0%. That shows which share needs more to go right — not which is cheaper. How far each trades from its estimated fair value is in the full valuations.
- Valuation method: both on discounted cash flow.
- 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 Tata Steel at about 7% (FY2018–FY2026).
- What to watch: volumes at Coal India; indian margins at Tata Steel.
| Coal India | Tata Steel | |
|---|---|---|
| Price | ₹404 | ₹187 |
| Market cap | ₹2.49L Cr | ₹2.33L Cr |
| P/E | 8.0 | 20.1 |
| P/B | 2.09 | 2.28 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Discounted cash flow | Discounted cash flow |
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.
One company, two steel businesses
Tata Steel, founded in 1907 at Jamshedpur, is one of India's two largest steelmakers. Its Indian plants — Jamshedpur, Kalinganagar and Angul, the last acquired with Bhushan Steel in 2018 — have their own iron-ore mines, which makes them among the lowest-cost producers in the world.
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 Tata Steel at about 7% (FY2018–FY2026). By revenue, Tata Steel is about 1.4 times the size of Coal India. Coal India kept 18.5% of revenue as net profit in FY2026; Tata Steel kept 4.7% of revenue as net profit in FY2026 — a sign of very different business models. Coal India was profitable in every year shown; Tata Steel reported a net loss in FY2024.
Full ten-year tables and charts are on each company's page: Coal India · Tata Steel.
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.
- Indian marginsCaptive iron ore gives the Indian business a cost advantage that drives most of the value.
- European lossesEvery year Europe loses less money adds directly to group value.
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.
- The steel cycleSteel prices can fall sharply when global demand weakens.
- EuropeDecarbonisation costs and weak demand could keep European losses going.
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 Tata Steel 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 Tata Steel at 20.1 times earnings and 2.28 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 Tata Steel?
Coal India is the world's largest coal producer by output and is majority-owned by the Government of India. Tata Steel, founded in 1907 at Jamshedpur, is one of India's two largest steelmakers.
Are Coal India and Tata Steel valued the same way?
Yes — both on discounted cash flow, so their workings compare like for like.
What does today's price assume for Coal India and Tata Steel?
Worked backwards from the share price, Coal India needs about 0% growth and Tata Steel about 6% growth, against 10% and 0% in their own records.