Rs 5/Sh Dividend, Record Date Soon: Buy Maharatna Mining PSU, TP Rs 545: Anand Rathi

Brokerage firm Anand Rathi is upbeat on large cap Maharatna mining public sector undertaking Coal India share and recommended buy call with target price of Rs 545 per share. Current market price of Coal India shares on BSE is Rs 486.75 per share. If you buy Coal India share at current market price of Rs 486.75 per share, you can fetch potential gain of 11.97%. Coal India Ltd share surged over 27% year-to-date and gained 113% in last 1-year. Coal India stock has a PE of 19.03 and ROE of 91.00. Coal India has a market capitalisation of Rs 2,99,970.80 crore. Coal India recommended Rs 5/share dividend and yet to announce the record date for the same.

LIC Stake In Coal India: LIC holds attractive stake of 10.18% in Coal India with 627,589,285 shares of the company. Meanwhile, FII/FPI holdings declined from 8.59% to 8.41% in March 2024 quarter. However, number of FII/FPI investors surged from 677 to 713 in March 2024 quarter.

Coal India Share Performance & Return: The 52-week high price of Coal India share on BSE is quoting Rs 527.20 per share (as on 03/06/2024) and 52-week low price is quoting Rs 223.30 per share (as on 26/06/2023), respectively. Coal India shares witnessed more than 40% rally in last 6-months, gained 113% in last 1-year, and zoomed 153% in last 2-years. In last 3-years, Coal India shares gained 206% and surged 91% in last 5-years.

Coal India Dividend: As per the May 2, 2024 BSE filing of Coal India, "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."

Coal India Financials: Coal India declared a rally of 26% in its consolidated net profit to Rs 8,682 crore for the quarter ended March 31, 2024. Revenue from operations fell 2% year-on-year (YoY) to Rs 37,410 crore for March 2024 quarter as against Rs 38,152 crore in the corresponding quarter of last year. Sequentially, Coal India's net profit declined 14% from Rs 10,130 crore announced in the preceding December quarter. Coal India's revenue rallied 3% quarter-on-quarter (QoQ).

The large cap PSU declared its consolidated EBITDA at Rs 11,337 crore for March 2024 quarter while margins declared at 30.3%. Total expenses for March 2024 slipped 8% YoY to Rs 28,298 crore as against Rs 30,873 crore declared in Q4 of last fiscal. For the whole 2023-24, CIL announced its net profit at Rs 37,402 crore, up 18% as against Rs 31,763 crore declared in FY23.

Coal India Incorporates Subsidiary: The BSE filing of Coal India as on May 28, 2024 gave details related to incorporation of subsidiary arm, Bharat Coal Gasification and Chemicals Ltd (BCGCL) for undertaking a coal-to-chemicals business. Coal India possesses a majority of 51% stake in the new entity and BHEL has 49% stake.

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.

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