Coal India Share Price: Maharatna PSU Beats Sensex, Nifty, Jumps 3% After Q4; BUY Before Dividend Record Date

Coal India Share Price: The Maharatna PSU giant, Coal India outperformed Sensex and Nifty on Thursday, May 8th, by surging nearly 3% after its healthy Q4 results. Sensex and Nifty traded flat to volatile. Coal India's overall Q4FY25 results was in-line with street estimates after muted H1FY25. For the financial year 2025-26, Coal India's volumes are expected to improve, while e-auction premium seen to be stable.

"COAL delivered a decent performance in 4QFY25 after a muted show in 1HFY25. The e-auction premiums softened during FY25, which got offset by better e-auction volume (~10% share to total sales volume)," analysts at Motilal Oswal said.

Coal India Share Price:

At the time of writing, Coal India stock performed at Rs 387.75 apiece on BSE, up by 1.03% with market valuation at Rs 2,38,651.65 crore. In the early trade, Coal India touched an intraday high of Rs 394.95 apiece, with gains of about 2.90% from previous session.

Coal India is the largest government-backed coal producer in the world. Its return on equity (RoE) is strong at 93.26%. While price-to-equity ratio is low at 13.86%.

Should You BUY Coal India Stock After Q4 Results?

Coal India is focused on raising its coal-washer capacity, which is expected to improve its market share in domestic coking/non-coking coal. Also, Coal India's management is focusing on the expansion of coal mines, which would be funded via internal accruals, or COAL might borrow to undertake certain projects.

For FY26/FY27, analysts at Motilal said, "We largely maintain our estimates and expect volumes to improve, which would boost earnings performance. The e-auction premium is expected to remain stable at 70% going ahead."

"We expect COAL to clock an 8% volume CAGR during FY25-27. This would translate into 11% revenue and 14% EBITDA CAGRs. At CMP, the stock is trading at 3.3x FY27E EV/EBITDA. We reiterate our BUY rating with a TP of INR480 (premised on 4.5x on FY27E EV/EBITDA)," they said lastly.

Coal India Q4 Results:

Coal India has achieved coal production of 781.05 MT (PY:773.65 MT), OB removal of 2018.20 M.CuM (PY: 1964.14 M.CuM) and Offtake of 763.06 MT (PY:753.51 MT) in the current fiscal with an impressive growth 1%, 3% and 1% respectively in Coal Production, OBR and Offtake, as per the financial report.

During the quarter, the PSU giant's revenue from operations stood at Rs 37,824.54 Crore, slightly lower than revenue of Rs 38,213.48 Crore in the same period of the previous year. On the other hand, Coal India's net profit jumped to Rs 9,592.53 Crore, marking a robust 12% increase over Rs 8,530.39 Crore recorded in the corresponding quarter of FY 2023-24.

FY25 revenue and net profit stood at Rs 1,43,368.92 crore and Rs 35,302.10 crore, slightly lower than revenue and net profit of Rs .1,44,762.42 crore and Rs 37,369.13 crore respectively.

Despite the marginal decline, revenue, EBITDA and PAT of Coal India in Q4FY25, was in-line with estimates of analysts.

Coal India Dividend 2025:

In a meeting held on May 7th, Coal India's board of directors recommended a final dividend of Rs 5.15 per share for FY25, at a face value of Rs 10 each.

The dividend would be paid within 30 days from the date of declaration at the AGM. The Record Date for Final Dividend would be fixed and intimated in due course, it said.

This will be in addition to interim dividend payout of Rs 21.35 per share for FY25, which represented 265% of the face value.

Taking into consideration the upcoming final and interim dividend, the total dividend payout by Coal India would arrive at Rs 25.50 per share in FY25, which is higher by Re 1 from the previous fiscal.

About Coal India Limited:

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.

CIL is the state owned coal mining corporate came into being in November 1975.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.