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Bharat Coking Coal (BCCL) Share Lists at 96% Premium: What Investors Should Do Now?

Md Salman Ashrafi Image

Md Salman Ashrafi

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Bharat Coking Coal (BCCL) Share Lists at 96% Premium: What Investors Should Do Now?
Table Of Contents
  • Key Facts and First-Day Trends
  • Post-IPO Valuation Check
  • Should You Hold or Sell Now?
  • What Investors Should Track Now
  • Final Take

Bharat Coking Coal (BCCL), a Coal India subsidiary and a key coking coal supplier for steel-making, came to markets with a ₹1,071 crore IPO. The IPO was priced at ₹21-₹23 and listed on NSE at ₹45, a 95.65% premium, taking the market cap to ₹20,957 crore.

​The big takeaway: listing-day excitement can fade if profits stay weak, so post-IPO tracking matters more than the pop. This blog breaks down the first-day signals, the updated valuation picture, and what to watch next so you can make calmer hold-or-book decisions.

Post-IPO Valuation Check

  • Updated P/E (price-to-earnings): Since the price moved from ₹23 to ₹45, the P/E effectively jumps about 2x versus IPO-day P/E on the same earnings base; using the IPO’s stated 43.23x on annualised H1 FY26, it roughly becomes ~84.6x at ₹45 per share.
  • IPO vs now: At ₹23, P/E looked ~9x on FY25 earnings but ~43.23x on weaker annualised H1 FY26; the listing pop pushes the “weak earnings” valuation much higher, so the stock now needs a profit recovery to justify the price.
  • ​Peer line: On the provided peer table in the RHP, BCCL’s P/E (43.23x on annualised H1 FY26 base) was already higher than Warrior Met Coal (19.44), and Alpha Metallurgical Resources (14.87), and the listing premium widens that gap further.

Also Read: 10 Things to Know Before You Apply for the BCCL (Bharat Coking Coal) IPO

Should You Hold or Sell Now?

  • Short-term trader: Tight risk controls often matter here, as premium listings tend to see sharp pullbacks when early gains are booked.
  • Medium-term investor: The next few quarters become important, with profits and cash collections needing improvement after H1 FY26 stress points.
  • Long-term investor: This fits better into a cyclical PSU-commodity framework, where ROCE and output trends matter, especially after FY25 ROCE of 30.13% and recent profit pressure.
  • Balanced action: A common strategy in such cases is trimming into strength while keeping a smaller core exposure, particularly ahead of anchor lock-in expiries that can increase supply.

What Investors Should Track Now

  • Quarterly results: Watch if the profit drop seen in the half-year ended Sep 30, 2025, reverses, because valuation now assumes better numbers ahead.
  • Cash flow and receivables: Track trade receivables of ₹2,202.52 crore and ~60 receivable days (vs 25 days in FY24), since slower collections can pressure borrowing and interest costs.
  • Debt and “possible bills”: Monitor borrowings of ₹1,559.13 crore and contingent liabilities of ₹3,598.59 crore, because both can hit future profit and cash flow if things go wrong.
  • Margins and costs: Keep an eye on EBITDA margin trend (FY25: 16.36%) and finance cost movement, as rising costs were a key reason profits looked uneven.
  • Anchor lock-in dates: Feb 12, 2026 (50%) and Apr 13, 2026 (remaining 50%); historically, lock-in expiries can bring 5-15% selling pressure, so price action around these dates matters.
  • Sector driver: Track steel demand and coking coal pricing signals, since BCCL’s business is tightly linked to steel production needs.

For complete information, visit Bharat Coking Coal (BCCL)’s official IPO page here.

Final Take

BCCL’s ₹45 listing shows serious market appetite, but the post-pop valuation leaves less room for weak quarters, especially after the sharp recent profit slowdown and receivables stretch. Next step: treat the next 1-2 results and the Feb 12 and Apr 13 anchor lock-in windows as “checkpoints” before deciding whether to trim, hold steady, or add only on better fundamentals.

For more IPOs, check INDmoney’s IPO tracker here.

Disclaimer

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. The securities are quoted as an example and not as a recommendation. This is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell or subscribe for securities. INDStocks SIP / Mini Save is a SIP feature that enables Customer(s) to save a fixed amount on a daily basis to invest in Indian stocks. INDstocks Private Limited (formerly known as INDmoney Private Limited) 616, Level 6, Suncity Success Tower, Sector 65, Gurugram, 122005, SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428. Refer to https://indstocks.com/pricing?type=indian-stocks; https://www.indstocks.com/page/indian-stocks-sip-terms-and-condition for further details.

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