Coal India: Star Performer

Coal India, the PSU behemoth has lived upto people’s expectations and continues it’s stellar performance even when the broader market is facing multiple headwinds.

Coal India has posted YTD returns of 15.54% till 23 May, 2011 in comparison to Sensex and Nifty’s returns of -12.49% and -12.52% in the same time-frame. The scrip has also outperformed BSE 200 and BSE 500 indices which have posted -11.20% and -11.25% in the similar time-frame.

    Courtesy: Finalaya “Compare Company” feature.

Even the market darlings like Infosys, Bharti, SBI and RIL have suffered mercilessly after their shocking performance in their report cards. The new kid on the block has outperformed the big daddies of D-Street and continues to allure more and more investors.

After making a blockbuster debut on the bourses on November 4 last year, Coal India, the Maharatna PSU recently surpassed ONGC to become the second most valuable company. The Kolkata headquartered Coal-India is now fighting hard with RIL to take a leadership position on market-cap terms.

The world’s largest miner which recently touched a 52 week high of 400.90 on BSE (17 May 2011) is still quoting at 370 which is still a premium of 51.02% against it’s IPO issue price of 245.The central government holds 90% in PSU and Institutions holding 7.80% of the remaining 10%.

The mega-PSU posted net sales of 4137.57 million as on 31 March, 2011 over 3978.55 million (31-March, 2010).On profitability front, company posted a whopping PAT of 46,961.03 million as on 31 March, 2011 over 37991.59 million (31 March, 2010).

The mega-PSU is already a constituent of BSE-500, BSE-200 and Morgan Stanley Composite Index. Being a second rank holder on Market-Cap front, it is already a strong contender for inclusion in BSE Sensex & Nifty.

References:

1) http://www.finalaya.com/CompareCompaniesChart.aspx

2)  http://www.coalindia.in/

Lessons from OBL encounter

1. A clear mission: To kill Bin Laden. Yes…this was a kill mission. While there may have been a discussion around capture, this mission was to rid the earth of one of the greatest threats to humanity. The mission was crystal clear…

2. Laser focus on the mission: As the report goes, this mission to get Bin Laden has been in the planning stages for two years, and the focus has been razor sharp.

3. Responsibility. Bush made it clear that he wanted Bin Laden “dead or alive”, and he did not accomplish that. Unfortunately, Obama inherited this duty, and not once has he criticized the former leadership for not capturing or killing Bin Laden. He made this “mission critical” and obviously said “If no one else is going to do it, we are going after him, and we are going to succeed.”

4. Strategic Agility: This mission is not something that was talked about in a bar over a week-end retreat and then implemented. Every step of the process was calculated out to the very minute, the very second. The President and the CIA met numerous times to plan out what would be one of the most historical events in humanity.

5. Discretion: Neither this mission nor the strategy were leaked. In leadership, there are times when you are going to need to practice the deepest level of discretion, especially when the stakes are so very high.

6. Delegation: Obama did not go into Bin Laden’s mansion and kill him. He gave the order to the CIA and the military to do the job, and he empowered them to get the job done well.

7. Top talent placement: The mission was accomplished by a team of Navy SEALS. The Navy Seals are the U.S Navy‘s principal special operations force and is a part of the Naval Special Warfare Command (NSWC).

The unit's acronym ("SEAL") is derived from their capacity to operate at sea, in the air, and on land – but it is their ability to work underwater that separates SEALs from most other military units in the world. They are the best of the best, and have been trained for years for a mission such as this one. They knew exactly what to do.

8. Vigilance: This mission has been planned and coordinated over a two year period. The focus, importance and desire did not wane or waver. To wait two years for a mission to be accomplished will send many leaders into a state of frustration, and the mission then gets dropped. Learn from this vigilance. Well thought out missions take time, patience and commitment.

9. Persistence: The mission to get Bin Laden did not stop until it was accomplished. I am sure multiple road blocks were thrown into the path, but their leaders found ways around and over those obstacles to make this mission come to fruition.