Rs 5/Share Dividend: 3 Analysts See Money-Minting Maharatna PSU Rising, Buy; TP Rs 520

Large cap Maharatna public sector undertaking Coal India shares slipped 3.02% in trade today to settle at Rs 460.45 per share. Coal India recommended Rs 5/share final dividend on May 2, 2024 with record date yet to be issued. Coal India shares witnessed stunning rally of 94% in last 1-year and 145% in last 2-years.

Life Insurance Corporation Of India (LIC) has high stake of 10.18% in Coal India as the PSU insurer has 627,589,285 shares of the company. FII/FPI have decreased holdings from 8.59% to 8.41% in March 2024 quarter while number of FII/FPI investors rose from 677 to 713 in March 2024 quarter. Coal India has a PE of 18.00 and ROE of 91.00. More details below:

Coal India Recommends Dividend: As per May 2, 2024 BSE filing of the PSU, "the Board of Directors in its meeting held on date had 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 Q4 Results: The state-owned firm declared a surge of 26% in consolidated net profit to Rs 8,682 crore for the quarter ended March 2024. Revenue from operations for the January-March 2024 quarter witnessed a dip of 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 slipped 14% from Rs 10,130 crore declared in the preceding December quarter. However, revenue zoomed 3% quarter-on-quarter (QoQ).

Coal India declared its consolidated EBITDA at Rs 11,337 crore for quarter under review and margins came at 30.3%. Total expenses for the quarter under consideration slipped 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 announced its net profit at Rs 37,402 crore, up 18% as against Rs 31,763 crore announced in FY23.

Coal India Dividend History: Coal India announced 26 dividends since February 18, 2011. In last 12 months, Coal India announced an equity dividend amounting to Rs 24.50 per share. At the current share price of Rs 460.45 per share, Coal India offers a dividend yield of 5.32%.

Buy Coal India Share: HDFC Securities has assigned buy call to Coal India share with target price of Rs 520 per share and maintain the stop loss at Rs 448 per share. The analyst has suggested to buy Coal India shares at Rs 460-475 range. According to the brokerage house, Coal India share appears in a healthy uptrend as the stock has been making higher tops and higher bottoms for the last few weeks. This week, Coal India broke out of its recent trading range amid massive volumes. Morgan Stanley has assigned buy call to Coal India share with target price of Rs 480 per share while Jefferies has assigned buy call to the large cap PSU with price target of Rs 520 apiece.

Coal India Share Performance: The 52-week high price of Coal India share on BSE is Rs 487.75 per share (as on 16/02/2024) 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 2,83,762.83 crore. Coal India shares rallied 94% in last 1-year and jumped 242% in last 3-years. Coal India stock soared 83% in last 5-years.

Coal India Dividend History: Coal India announced 26 dividends since February 18, 2011. In last 12 months, Coal India announced an equity dividend amounting to Rs 24.50 per share. At the current share price of Rs 453.10 per share, Coal India offers a dividend yield of 5.41%.

Coal India Technical: Score is 71.7 indicating Coal India is technically moderately strong. Stocks with score between 60 and 70 are considered as technically moderately strong. RSI stands at 57.1, RSI below 30 is considered oversold and above 70 overbought. MFI is 54.5, MFI above 70 is considered overbought. This implies that stock may show pullback. At 5.6, MACD is above its center and signal line, this is a bullish indicator. according to Trendlyne.

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 HDFC Securities, Jefferies and Morgan Stanley. 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.