Buy Multibagger Maharatna PSU Stock For Gain, TP Rs 435: ICICI Securities

Brokerage house ICICI Securities has recommended investors to buy Coal India Ltd shares with target price of Rs 435 apiece. Current market price of Coal India share on BSE is Rs 384.50 per share with intraday fall of 0.03%. Coal India shares offered return of 66% in last 6-months and 151% in last 2-years. Coal India has a market capitalisation of Rs 2,37,265.04 crore. Check details below:

CIL's Supplies To NRS Hit All-Time High Of 98 Mts Ending Dec' FY 2024: Coal India informed via its BSE filing on January 2, 2023, "Even as Coal India's (CIL) supplies to the country's power sector exceeded the projected commitment, the company supplied an all-time high volume of 98 million tonnes (mts) to non-regulated sector (NRS) consumers till December FY 2024. This converts to a whopping 23 mt increase with 31% growth over 75 mts of same period last fiscal."

With increased production and maximized supplies through all modes of despatch, CIL's offtake to power plants of the country rose to 454 mts during April December FY 2024. This is 8 mts higher than the committed quantity of 446 mts of the period. Compared to 433 mts of April-December last year the increase is 21 mts with around 5% growth, added the press release of Coal India.

Coal India Valuation: According to ICICI Securities, "CIL reported a robust operating performance in Dec'23 despite the higher base of last year. At this stage, we introduce FY26 estimates and value CIL at 7.5x EPS (earlier 8x EPS) as we roll over to FY26E. Our revised TP works out to INR 435 (earlier INR 395). We maintain BUY rating on the stock. Our recommendation is also based on a dividend yield of 8% through to FY26." If you buy Coal India shares at last trading price of Rs 384.50 apiece, you can fetch likely gain of 13.13%.

Coal India Share Performance & Return: The 52-week high price of Coal India on BSE is Rs 395.80 apiece and 52-week low price is Rs 207.70 apiece, respectively. Coal India shares surged 33% in last 3-months, gained 180% in last 3-years, and offered gain of 63% in last 5-years. Coal India stock rallied 53% in last 5-years.

Coal India Dividend: According to the regulatory filing generated 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."

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.

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The stock has been picked from the brokerage report of ICICI 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.