Coal India Share: Before Dividend, Top Coal Producer Makes Investors Rich, Gives 90% Returns Better Than FDs

Coal India's share price is shining with impressive gains in the past six months. The world's largest government-backed coal producer is currently in focus for its interim dividend recommendation along with Q3 results which are scheduled next week. But before announcing dividend rewards, Coal India is making investors rich in the short term span.

Coal India Share Price:

The Maharatna status stock ended at Rs 440.25 apiece on Monday, up by 4.93% on BSE with a market cap of over Rs 2.71 lakh crore. In the trading session of the day, Coal India's share price touched a fresh 52-week high of Rs 450 apiece.

Coal India shares have been hitting back-to-back new record highs since last week. In a month, Coal India shares gained by over 16% on BSE, while in six months, the upside is huge by 89.44%.

An investment of Rs 1 lakh in Coal India six months ago, is now up to Rs 1,89,440 investment vaCoal India 2nd Interim Dividend:

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.

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.

Coal India Q3 Productions:

Coal India stock price rallied on bulls also after its production data where it sets a new record. Setting a new performance high for January of any year till now, Coal India notched several record highs in coal supplies and production in January 2024.

In January 2024, Coal India's output was 78.4 million tonnes (MTs) highest ever for the month, logging 9.1 per cent y-o-y growth. The month's increase of 6.5 MTs came over a high base of around 72 MTs in January 2023. Accelerating the pace to reach the stiff 780 MTs coal production target of FY 2024, CIL January produced 610.3 MTs - 59 MTs more compared to April- January 2023. The growth was 10.8%.

A senior executive of CIL said, "What gives us some latitude in chasing a challenging output target is that we have moved past the 600 MT production mark, on 29 January, 24 days ahead compared to last fiscal. We are striving to maintain the pace."

Further, CIL highlighted that its supplies at 67.6 MTs have surged to their highest during January with nearly 5% growth compared to January 2023. The company ended the ten month period of the ongoing fiscal increasing its total off-take by 47.2 MTs with a growth of 8.3 percent to
619.5 MTs. This was despite all India transporters' strike in the first week of January. Comparatively, the off-take was 572.3 MTs a year ago same period.

Also, meeting the demand of the power sector CIL supplied around 55 MTs to coal-fired plants in the country, yet another high for the month. Staying ahead of the projected demand since the beginning of the fiscal, CIL's supplies to coal-fired plants raced to 509 MTs till January, 7.3 MTs higher than 503.5 MT of the progressive commitment.

Moreover, CIL's increased supplies forming the bulk, ensured stock at domestic coal-based power plants hit an all-time high of 36.2 MTs in January 2024 eclipsing the
previous high of 34.5 MTs recorded four years ago same month.

Lastly, on average, CIL loaded a record 315.2 rakes per day to all-consuming sectors, which is 7.2 rakes higher than the earlier 308 rakes record achieved for a month in March 2021. Each rake corresponds to around 4,000 tonnes of coal.