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Today's prices ask more of Vedanta than of Coal India.
At current prices, buyers of Coal India are assuming about 0% growth against 10% in its own record; for Vedanta it is 5% 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: Coal India is worth about 2.4 times Vedanta 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 Vedanta at about 7% (FY2018–FY2025).
- What to watch: volumes at Coal India; commodity prices at Vedanta.
| Coal India | Vedanta | |
|---|---|---|
| Price | ₹404 | ₹260 |
| Market cap | ₹2.49L Cr | ₹1.02L Cr |
| P/E | 8.0 | 4.7 |
| P/B | 2.09 | 2.04 |
| 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.
A resources conglomerate
Vedanta, controlled by Anil Agarwal's UK-based Vedanta Resources, produces aluminium, zinc, silver, oil and gas, iron ore, copper and power. It owns a majority of Hindustan Zinc, one of the world's largest zinc miners, and Cairn India's oil fields in Rajasthan.
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 Vedanta at about 7% (FY2018–FY2025). By revenue the two are of broadly similar size. Coal India kept 18.5% of revenue as net profit in FY2026; Vedanta kept 13.4% of revenue as net profit in FY2025. Coal India was profitable in every year shown; Vedanta reported a net loss in FY2020.
Full ten-year tables and charts are on each company's page: Coal India · Vedanta.
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.
- Commodity pricesAluminium, zinc, silver and oil prices drive profit.
- Hindustan ZincIts dividends and value are a large part of Vedanta's worth.
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.
- Commodity downturnsFalling metal prices hit every business at once.
- Group leverageRefinancing pressure at the parent is a long-running concern.
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 Vedanta 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 Vedanta at 4.7 times earnings and 2.04 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 Vedanta?
Coal India is the world's largest coal producer by output and is majority-owned by the Government of India. Vedanta, controlled by Anil Agarwal's UK-based Vedanta Resources, produces aluminium, zinc, silver, oil and gas, iron ore, copper and power.
Are Coal India and Vedanta 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 Vedanta?
Worked backwards from the share price, Coal India needs about 0% growth and Vedanta about 5% growth, against 10% and 0% in their own records.