Buy Maharatna Dividend PSU For TP Rs 550; Shares Hit Lower Circuit Today: Axis Securities

Axis Securities has recommended buy call to large cap Maharatna public sector undertaking Coal India share with target price of Rs 550 per share. Current market price of Coal India share on BSE is Rs 441.95 per share with huge intraday fall of 13.69%. Coal India shares hit lower circuit in trade today after hitting 52-week high on June 3, 2024. Coal India share declined 9.34% in last 1-week and witnessed nearly similar decline in last 2-weeks-time.

Shares of leading PSUs witnessed sharp decline in trade today amid D-street bloodbath where Sensex ended with the decline of 4389 points to 72,079 points as Lok Sabha results did not go the way exit polls predicted. More details below:

Coal India Gives Update On Incorporation Of Subsidiary: Coal India on May 28 announced incorporation of a subsidiary arm, Bharat Coal Gasification and Chemicals Ltd (BCGCL) for undertaking a coal-to-chemicals business. CIL holds a majority of 51% stake in the new entity while BHEL holds 49% stake, as per the BSE filing. CIL in February signed a joint venture agreement with Bharat Heavy Electricals Ltd (BHEL) for undertaking a coal-to-chemicals business.

Coal India Announces Rs 5 Dividend: As per the May 2, 2024 BSE filing of the PSU, "Board of Directors recommended payment of Final Dividend for the financial year 2023-24 @ 5/- per share of the face value of Rs 10/- as recommended by the Audit Committee of CIL in its meeting held on date subject to the approval of the Members at the ensuing Annual General Meeting ("AGM") of the Company."

LIC Hold Attractive Stake In Coal India: LIC holds a strong 10.18% stake in Coal India with 627,589,285 shares of the company. FII/FPI holdings came down from 8.59% to 8.41% in March 2024 quarter. Meanwhile, number of FII/FPI investors rose from 677 to 713 in March 2024 quarter.

Coal India Q4 Results: Coal India declared a rally of 26% in consolidated net profit to Rs 8,682 crore for March 2024 quarter. Revenue from operations for the March 2024 quarter fell 2% year-on-year (YoY) to Rs 37,410 crore as against Rs 38,152 crore in the corresponding quarter of last year. Sequentially, net profit fell 14% from Rs 10,130 crore announced in the preceding December quarter. Revenue soared 3% quarter-on-quarter (QoQ). Coal India declared consolidated EBITDA at Rs 11,337 crore for quarter under consideration while margins announced at 30.3%. Total expenses March 2024 declined 8% YoY to Rs 28,298 crore as against Rs 30,873 crore declared in the Q4 of last fiscal. For the whole 2023-24, Coal India declared its net profit at Rs 37,402 crore, up 18% as against Rs 31,763 crore announced in FY23.

Coal India Share Performance: The 52-week high price of Coal India share on BSE is Rs 527.20 per share (as on 03/06/2024) and 52-week low price is Rs 223.30 per share (as on 26/06/2023), respectively. Coal India has a market capitalisation of Rs 2,72,361.78 crore. Coal India shares fell 2.91% in last 3-months, gave return of 25% in last 6-months, soared 91% in last 1-year, and jumped 124% in last 2-years. In last 3-years, Coal India shares rose 189%. Coal India shares jumped 68% in last 5-years.

About Coal India: CIL is a Maharatna company - a privileged status conferred by Government of India to select state owned enterprises in order to empower them to expand their operations and emerge as global giants. The select club has only ten members out of more than three hundred Central Public Sector Enterprises in th e country.

Disclaimer: The stock has been picked from the brokerage report of Axis Securities. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.