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Coal India is the largest coal producer in the world, mainly focused on the domestic market, India, where it enjoy a virtual monopoly. The company is in strong financial health. It enjoys high levels of cash and very low levels of leverage.

The company has been analysed by Piyush Jain who believes that it is a unique commodities play. It is a rare to find such a company in its space globally which is rich in cash reserves, low in debt, and has such a high dividend payout ratio. To read his detailed analysis. A bit of concern is the company's overseas acquisition strategy which brings its own share of risks and potential for capital losses. Coal India acquired a prospecting license for two coal blocks in Mozambique in fiscal 2011 to explore and develop coal blocks over a period of 5 years. The company is also currently considering 7 international share sale proposals.

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