Rs 25.50 Dividend, ROE 86.21: Maharatna Mining PSU Likely To Hit Rs 650 TP, Buy: ICICI Direct

Two leading brokerage firm has recommended investors to buy large cap Maharatna PSU Coal India shares with maximum target price of Rs 650 apiece. If you buy Coal India shares at last trading price of Rs 491.80 apiece, you are likely to fetch 32.17% return. Coal India shares offered return of 113% in last 2-years and shares slipped over 3% in last 1-week. The company's market cap stood at Rs 3,03,082.98 crore. The firm offers a high ROE of 86.21. In last 1-year, Coal India announced an equity dividend amounting to Rs 25.50 per share. Check details below:

Coal India Share Performance: The 52-week high price of Coal India share on BSE is Rs 544.70 per share (as on 26/08/2024) and 52-week low price is Rs 283.15 per share (as on 09/10/2023), respectively. Coal India shares fell over 2% in last 2-weeks, gained 71% in last 1-year, and surged 161% in last 3-years.

ICICI Direct & Axis Securities Recommend Buy: ICICI Direct has recommended investors to buy Coal India shares with target price of Rs 650 per share. JM Financial assigned buy call with target price of Rs 601 per share. Meanwhile, Axis Securities suggested buy call to Coal India stock with target price of Rs 575 per share. The analyst said, CIL has a capex plan of Rs 15,500 crore for FY25, and it plans to allocate a major portion of that towards diversification projects such as solar and thermal power, coal gasification and the revival of fertilizer plants, which are other positives for the mining behemoth.

ICICI Direct said, "we maintain a positive view on Coal India amidst healthy volume growth

Axis Securities is bullish on Coal India amid its ambitious coal production and off-take targets of of 838/1,000MT for FY25 and FY26. On the other hand, ICICI Direct too recommended buy call to Coal India shares with target price of Rs 650. The analyst said, "we maintain a positive view on Coal India amidst healthy volume growth on the anvil, its diversification efforts in new sunrise spaces, healthy net cash positive b/s and robust dividend yield (~5%). We assign BUY rating to Coal India with target price of Rs 650 i.e. 5.5x EV/EBITDA on FY26E."

Coal India Dividend History: Coal India announced a total of 27 dividends since February 18, 2011. In last 1-year, Coal India announced an equity dividend amounting to Rs 25.50 per share. At the current share price of Rs 491.80, Coal India offers a dividend yield of 5.18%.

Coal India Latest Dividend: According to the May 2, 2024 exchange filing of the PSU, "Board of Directors 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."

Shareholding: FII/FPI increased holdings from 8.39% to 9.16% in September 2024 quarter. Number of FII/FPI investors increased from 747 to 754 in September 2024 quarter. Mutual Funds have decreased holdings from 10.74% to 10.54% in September 2024 quarter. Institutional Investors have increased holdings from 31.65% to 31.84% in September 2024 quarter.

About: 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, JM Financial, and ICICI Direct. 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.