Maharatna PSU Coal India Inks JV With EDF India, Buy CIL Shares Post Q3?

Maharatna public sector undertaking (PSU) Coal India shares will remain in spotlight tomorrow after the company informed via its BSE filing about inking a joint venture with EDF India Private Limited. CIL share price stood at Rs 369.90 per share as on February 21, 2025 with intraday gain of 0.54%. The stock offers a high return on equity of 93.26% and has a market capitalisation of Rs 2,27,959.32 crore. The BSE 100 stock gained 72.81% in last 2-years. It outperformed Sensex, BSE Energy India, and BSE Metal as they gained 24.13%, 37.00%, and 43.13% during the same period. CIL shares zoomed 4.48% in last 1-week and slipped over 4% year-to-date. The stake of Life Insurance Corporation Of India (LIC) stood at 9.74% in CIL.

The PSU traded ex-dividend on January 31, 2025 for Rs 5.60 per share interim dividend. The company on January 27, 2025 recommended 2^nd interim dividend of Rs 5.60 per share on the face value of Rs 10/- per share. Check more details below:

CIL Inks Joint Venture With EDF India

According to the BSE filing of the PSU dated February 23, 2025, “Reference to the captioned subject, Kindly note that Coal India Limited (CIL) and M/s EDF India Private Limited {a wholly owned subsidiary of Électricité de France SA (EDF)} have executed a Non-Binding Shareholders Agreement (SHA) Term Sheet on 23rd February 2025 to form a Joint Venture between CIL and EDF to undertake PSP projects along with other renewable energy projects in India and neighboring countries.”

Coal India Shares Performance

The 52-week high price of Coal India share on BSE stood at Rs 544.70 apiece (as on 26/08/2024) and 52-week low price is Rs 349.20 per share (as on 17/02/2025), respectively. Coal India shares slipped 30.48% in last 6-months, fell 14.56% in last 1-year, and zoomed 129.47% in last 3-years. However, in last 10-years, CIL stock fell 3.34% when Sensex gained over 157%.

CIL Dividend History

The stock maintains an attractive dividend yield of 7.12% if the last trading price of Rs 369.90 per share is considered. The PSU declared a total of 29 dividends since 2011. In last 1-year, it recommended a dividend of Rs 26.35 per share.

CIL Bonus Shares History

The company never recommended any bonus shares and stock split till date.

Coal India Dividend Yield

CIL recommended a total of 29 dividends since February 18, 2011. In last 1-year, Coal India recommended an equity dividend amounting to Rs 26.00 per share. At current share price of Rs 375.75 apiece, Coal India offers a dividend yield of 6.89%.

Should You Buy Coal India Shares today?

Nuvama Institutional Equities recommended hold call after the company declared its Q3 results. The analyst slashed the target price to Rs 419 per share. “We do not see much downside, but prefer to wait for volume growth to re-enter the stock,” added Nuvama.

Brokerage firm Motilal Oswal maintained buy call with target price of Rs 480 on CIL and called the stock its top pick in metal and mining sector. It said, “further, management is focusing on coal mine expansions, which would be funded via internal accruals, or Coal India might borrow to undertake certain strategic diversification projects, such as renewable energy facilities and coal gasification.”

Morgan Stanley said the quarterly results of CIL for December quarter was chiefly an “okay quarter”, as CIL’s Fuel Supply Agreements (FSA) volumes remained lower as a result of muted demand for power. The global brokerage recommended ‘overweight’ rating with the target price of Rs 525 per share.

Shareholding

FII/FPI reduced holdings from 9.16% to 8.58% in December 2024 quarter. Number of FII/FPI investors came down from 754 to 710 in December 2024 quarter. Mutual Funds reduced holdings from 10.54% to 10.81% in December 2024 quarter. Number of MF schemes plummeted from 36 to 35 in December 2024 quarter. On the other hand, Institutional Investors reduced holdings from 31.84% to 31.28% in December 2024 quarter, according to Trendlyne’s report.

Disclaimer: The stock has been picked from the brokerage report of Motilal Oswal, Nuvama, and Morgan Stanley. Money Daily, the Author, and the respective Brokerage House will no be held accountable for any losses caused as a result of decisions based on the article. MoneyDaily.in advises readers to do their own research or consult a SEBI registered investment advisor before making any investment decisions.

Renu Baliyan

Renu Baliyan has been covering business and personal finance news for the last 14 years. She has worked for leading media houses such as Goodreturns.in, India Today, News 24, Money Mantra Business Magazine, LBA Associates, and Political & Business Daily Newspaper. She has expertise in covering business news related to stocks, currency, Indian economy, gold prices, silver prices, and fixed deposits. When she is not working, she likes to spend her time taking care of plants, painting, and travelling.