Stock To Buy For 2024: Motilal Oswal Picks PSU Mining Stock, TP Rs 430

Leading brokerage firm Motilal Oswal has assigned buy rating to to Maharatna public sector undertaking Coal India shares with target price of Rs 430 apiece. Current market price of Coal India share on BSE is Rs 375.95 apiece with intraday decline of 1.29%. Earlier, Coal India shares traded ex-dividend on November 21, 2023.

Coal India on November 10 declared first interim dividend of Rs 15.25 per share for the financial year 2023-24 on the face value of Rs 10/- each. Coal India shares offered shareholders return of 156% in last 2-years and gained 65% in last 6-months. Check details below:

Coal India Shares Dividend: As per the regulatory filing issued on November 10, "the Board of Directors at its meeting held on date has inter alia, declared 1st Interim Dividend for the financial year 2023-24 @ Rs. 15.25/- per share on the face value of Rs 10/- as recommended by the Audit Committee of CIL at its meeting held on date. The company has fixed Tuesday, 21st Nov' 2023 as the "Record Date" for the purpose of declaration of 1st Interim Dividend on equity shares for the Financial year 2023-24. The date of payment of "1st Interim Dividend" for FY 2023-24 shall be by 9th Dec' 2023."

Coal India Stock Performance & Return: The PSU mining stock's 52-week high price is quoted Rs 382.85 apiece and 52-week low price is quoted Rs 207.70 apiece, respectively. Coal India has a market capitalisation of Rs 2,31,687.77 crore. Coal India stock offered shareholders a rally of 67% YTD, gained 70% in last 1-year, and jumped 156% in last 2-years.

Valuation: According to Motilal Oswal, "We reiterate our BUY rating on the stock with a TP of INR430 (premised on 5x FY26E EV/EBITDA). We believe COAL is well placed to capitalize on the growth opportunity ahead." The Ministry of Power has set an FY24 electricity generation target of 1,750bu (growth of 7.2% YoY) of which, the share of thermal power is expected to be over 75%. This provides long-term growth visibility to COAL, added the analyst.

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
the country.

Disclaimer: The stock has been picked from the brokerage report of Motilal Oswal and Jefferies. 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.