NTPC, the only major Indian company still adding coal-fired capacity, is also boosting coal output from its own mines, while Coal India is slashing thousands of jobs a year and outsourcing some operations to boost margins. In an October note titled, "This elephant can dance," Bobcaps said NTPC's lower cost of debt gave it an edge in the power industry and it stood to benefit from the government's view that thermal additions were key to stability. Since 2021, NTPC has tripled in value to $34 billion, while the world's largest coal miner has grown 2.5 times to $26 billion. Coal India lost 57% of its value in the decade through 2020, while NTPC lost more than a third. Of the eight years of growth the Nifty saw in the last decade, Coal India and NTPC outperformed it just once each. "Foreign shareholding in the company has steadily moved higher over the last two years, highlighting the dialing-down of the ESG discount," JPMorgan said in an August note on Coal India.īoth companies were long seen as dividend stocks. NTPC investors include the asset management units of Goldman Sachs and Nippon Life, Vanguard and Blackrock, while Fidelity, Mellon Investments and Charles Schwab figure among Coal India's top 20 shareholders, LSEG data showed. Foreign funds have been boosting their stakes, despite tougher global environmental, social and governance (ESG) norms for institutional investors.
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