152.5% Payout: Highest Dividend Yield Maharatna Coal India Hits New High After Budget; Q3, Dividends Next Week

In the trading session after a vote-on account of Interim Budget announcements, the world's largest government-backed Coal India touched a new 52-week high on Friday. The Maharatna stock has doubled investors' money in a year, rising by over 100% on BSE. Not only the reforms to drive the energy and utilities sector in the Budget fuelled the bulls, but also the upcoming dividend payout and Q3FY24 results next week were major drivers for buyers in Coal India.

Here are the key details:

Coal India 2nd Interim Dividend:

Coal India has the highest dividend yield in the PSU stocks and is also among the large-caps on the Indian market. At the current market price, CIL's dividend yield is at 5.79%.

The board of directors at Coal India is scheduled to meet on February 12. On this day, the board will consider and declare payment of the 2nd Interim Dividend for FY 2023-24, if any.

As per the regulatory filing, CIL has fixed Tuesday, 20th Feb'24 as the 'Record Date' for payment of the 2nd Interim Dividend on Equity Shares for Financial Year 2023-24, if declared by the Board.

With the 'T+1' settlement type in effect on stock exchanges, now shares turn ex-dividend on the same day as the record date. Hence, Coal India's ex-dividend date for the upcoming dividend is also on February 20.

Earlier, the company paid its first interim dividend of 152.5% amounting to Rs 15.25 per share for FY24. Meanwhile, in the previous financial year 2022-23, Coal India paid up to 242.50% dividend aggregating to Rs 24.25 per share.

Coal India Share Price:

This stock price of the behemoth touched a new 52-week high of Rs 422.80 apiece on Friday. The stock also ended near its new high of Rs 419.55 apiece, up by 3.2% on BSE with a market cap of Rs 2,58,557.27 crore.

Compared to its 52-week low of Rs 207.70 apiece, Coal India's shares have more than doubled the returns for investors with gains of 103.6%.

Coal India Q3 Results:

In its regulatory filing, at the start of the New Year, Coal India announced that with all the CIL's producing arms posting positive growth, the public sector coal miner produced 532 mts of coal at the end of the nine months FY 2024 logging 11 % year-on-year growth. Production in volume terms rose sharply by 53 mts over 479 mts of April-December FY 2023. On a progressive basis, CIL has sustained double-digit growth since July 2023.

Further, with the appetite for coal remaining firm CIL's total off-take rose to 552 mts with a healthy growth of 8.7% till ending December FY 2024. This reflects 44 mts higher supply compared to 508 mts of last year's similar period. Five of CIL's subsidiaries have checked in double-digit growth.

Also, Coal stocks at domestic coal-based power plants have surged to 32 mts ending December FY 2024, about 5.6% more on a comparative basis than last year.

In Q2FY24, Coal India posted a net sales of Rs 29,978.01 crore, higher from Rs 27,538.59 crore in the same quarter a year ago. While PAT stood at Rs 6,813.50 crore, also up from Rs 6,043.99 crore in Q2 of FY23.

Interim Budget Boost To Coal Sector:

In her budget speech on February 1, FM Nirmala Sitharaman announced a host of measures towards India's commitment to 'net-zero' by 2070. She said, viability gap funding will be provided for harnessing offshore wind energy potential for the initial capacity of one giga-watt. While coal gasification and liquefaction capacity of 100 MT will be set up by 2030, which will also help in reducing imports of natural gas, methanol, and ammonia.

Moreover, the FM also announced that phased mandatory blending of compressed biogas (CBG) in compressed natural gas (CNG) for transport and piped natural gas (PNG) for domestic purposes will be mandated. Financial assistance will be provided for the procurement of biomass aggregation machinery to support collection.

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