Dividend Yield 5.39%, Highest Dividend In 5-Yrs: Buy Coal India Shares, TP Rs 510: Axis Securities

Brokerage firm Axis Securities has issued buy call on Coal India shares with target price of Rs 510 apiece. Current market price of Coal India Ltd shares on BSE is Rs 454.50 apiece with intraday gain of 1.35% at the time of writing the story. If you buy Coal India shares at current market price of Rs 454.50 apiece, you can fetch potential return of Rs 12.21%. Coal India shares zoomed 83% in last 6-months and offered investors multibagger returns of 104% in last 1-year. Check details below:

Coal India Dividend History: Coal India announced 26 dividends since February 18, 2011. In last 12 months, Coal India declared an equity dividend amounting to Rs 24.50 per share. At the current share price of Rs 454.50, Coal India stock offers dividend yield at 5.39%. Coal India also declared highest dividend in last 5-years in 2023 Rs 15.25 per share in Q2. Earlier, the PSU announced Rs 16.50 per share dividend in 2018.

Coal India Shares Performance & Return: The 52-week high price of Coal India stock on BSE is Rs 487.75 apiece and 52-week low price is Rs 207.70 apiece, respectively. The company has a market capitalisation of Rs 2,80,003.56 crore. The PSU has a ROE of 89.86, PE of 17.75, and EPS (TTM) of 25.26, as per BSE data. Coal India stock zoomed 19% year-to-date (YTD), soared 28% in last 3-months, jumped 103% in last 1-year, and gained 151% in last 2-years. In last 3-years, Coal India stock gained 198% and 96% in last 5-years.

Bharat Heavy Electricals Inks JVA With Coal India: According to the BSE filing of the company dated Feb 28, 2024, BHEL inked a JVA with Coal India on February 28, 2024 in order to form a Joint Venture Company to undertake Coal to Chemicals business by initially setting up a Coal to 2000 TPD Ammonium Nitrate Plant using BHEL's in-house developed PFBG (Pressurized Fluidized Bed Gasification) technology.

The BSE filing further stated the significant terms of the agreement in brief. As per the agreement, "equity shareholding shall be 51% with CIL and 49% with BHEL. The Joint Venture Company shall be incorporated as a "Private Limited" Company with an Initial paid-up share capital of INR 1,00,000 (INR One Lakh only). The registered office of the JVC shall be situated in the state of Odisha, India. d. When it comes to Board of Directors, BHEL and CIL shall have the right to nominate three (3) Directors each on the Board of the JVC."

Coal India Financials: The large cap PSU on February 12 declared its net profit at Rs 9093.69 crore, up 17.8% for the quarter ended December 31, 2023 as against Rs 7719.11 crore in the corresponding quarter of last year. The state-run company's revenue from operations gained 2.8% to Rs 36,153.97 crore for December 2023 quarter as compared to Rs 35,169.33 crore for the similar quarter of last year. The maharatna PSU's consolidated sales zoomed to Rs 38,357.23 crore for the Oct-December tenure as against Rs 36,754.29 crore in the same quarter of preceding fiscal, a jump of 4.4%. It also declared its 2nd interim dividend for the FY 2023-24 at Rs 5.25 per share. Dividend was paid on March 12, 2024.

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.