NTPC, which produces mostly coal-fired power, has surged 78%, far ahead of a gain of 17% in the broader Nifty Index, while shares of Coal India are up 55% for their best year in 2023.
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Already the most coal-dependent major economy, India's reliance on the fuel for power generation is set to rise for a third straight year as the addition of renewables slows, giving the two giants a boost.
Analysts expect their efforts to boost efficiency and access to cheap capital to extend the rally, with most recommending that shareholders buy more of the two stocks or retain their holdings, LSEG data shows
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By comparison, shares of coal miners elsewhere, such as Indonesia's Adaro Energy (ADRO.JK), Australia's Whitehaven Coal (WHC.AX) and U.S.-based Peabody (BTU.N) plummeted this year. Shares of China Shenhua (601088.SS) and China Coal Energy (601898.SS) rose, but less than the Indian companies.
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Among coal-fired power generators, South Korea's KEPCO, U.S.-based Duke Energy (DUK.N) and American Electric Power (AEP.O) suffered sharp declines. Russia's Inter RAO shares rose 16.2%.
While most of the miner's sales are on low-margin, long-term contracts to utilities, surplus output has allowed bigger spot sales in the lucrative auction market. By comparison, tightening funding has choked global coal miners.
