Shares of Coal India Ltd today plunged by 1.94% on Bombay Stock Exchange (BSE) to Rs 375.75 per share ahead of the Q3 results and interim dividend announcements. The state-owned firm has already fixed January 31, 2025 as the record date for second interim dividend. The company today informed via its exchange filing about change in directorate. According to regulatory filing of the company, “Mr. Achyut Ghatak took over the charge as Director (Technical), Coal India Limited (CIL) on 23rd January 2025. He succeeds Dr. B Veera Reddy who stepped down on 31 August 2024 on attaining the age of superannuation. Mr. P M Prasad, Chairman, CIL held the additional charge during the intervening period.”
The PSU offers a dividend yield of 6.89% and return on equity (ROE) of 91.47%. Life insurance corporation of India (LIC) has a stake of 9.74% in CIL. The PSU has a market capitalisation of Rs 2,30,486.04 crore. Check key details below:
Coal India To Declare Financial Results, Interim Dividend
As per the exchange filing of CIL dated January 15, 2025, “Board of Directors of the company will be held on Monday, the 27th January’ 2025 interalia, to consider, approve and take on record Un-Audited Financial Results of the Company (Standalone & Consolidated) for the 3rd quarter ended 31st Dec’ 2024 after the results are reviewed by the Audit Committee of the Board. Further, pursuant to Regulation 29 & 42 of the Listing Regulations 2015, revised notice is also given that Board of Directors of the company may also, inter alia, consider and declare payment of 2nd Interim Dividend for FY 2024-25, if any. The Company has fixed 31st January’2025 as the “Record Date” for the purpose of payment of 2nd Interim Dividend on Equity Shares for Financial Year 2024-25, if declared by the Board instead of 27th Jan’ 2025.”
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%.
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 361.30 per share (as on 13/01/2025), respectively. Coal India shares climbed 3.07% in last 2-weeks, slipped 26.59% in last 6-months, fell 3.98% in last 1-year, and gained 681.3% in last 2-years. CIL shares surged 133.09% in last 3-years.
Should You Buy Coal India Shares?
According to A R Ramachandran, SEBI registered Independent research analyst, “Coal India is bearish on the Daily charts with strong resistance at 391. A Daily close below support of 374 could lead to a target of 355 in the near term.”
Earlier, brokerage firm Motilal Oswal, in its report dated January 9, 2025, recommended buy call with target price of Rs 480 per share after valuing the stock at 4.5x FY27E EV/EBITDA.
The analyst said, “the prospects for COAL remain strong, driven by healthy volume expectations, favorable e-auction premiums, and declining costs. Additionally, the recent stock correction offers an attractive valuation, with the stock trading at 3.3x on FY27E EV/EBITDA, below its 10-year historical average of 3.6x EV/EBITDA.”
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.
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. Coal India Limited (CIL) the state owned coal mining corporate came into being in November 1975. With a modest production of 79 Million Tonnes (MTs) at the year of its inception CIL today is the single largest coal producer in the world and one of the largest corporate employer with manpower of 272445 (as on 1st April, 2020), according to its official website.
Disclaimer
The stock has been picked from the brokerage report of A R Ramachandran and Motilal Oswal. Moneydaily.in, the Author, and the respective Brokerage House will not 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.
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