Dividend Likely On Nov 10: ICICI Securities Upgrades PSU Stock TP To Rs 395, Buy

ICICI Securities has recommended buy call to large cap state-run mining sector stock, Coal India and upgraded the target price from earlier Rs 325 to now Rs 395 per share. Board of directors of the Maharatna company will hold meeting on November 10 to consider, approve, and take on record Audited Financial Results of the company (standalone and consolidated) for the second quarter and half year ended September 30, 2023. The company may also consider recommendation of first interim dividend for FY 2023-24, if any, subject to approval of shareholders. Check details below:

Coal India Stock Performance & Return: Last trading price of Coal India share on BSE is Rs 312.30 per share with intraday fall of 0.76% as on October 20. The stock's 52-week high price is Rs 319.55 per share and 52-week low price is Rs 207.70 per share, respectively. Coal India has a market capitalisation of Rs 1,92,462.01 crore. Coal India shares gained 36% in last 3-months, soared 39% YTD, jumped 30% in last 1-year, gained 73% in last 2-years, and offered highest rally in last 3 years with return of 175%.

Coal India Upcoming Board Meeting For Quarterly Results, Interim Dividend: As per the BSE filing of the company, ""Pursuant to Regulation 29 & 33 of the SEBI (LoDR) Regulations 2015, notice is hereby given that the meeting of Board of Directors of the company will be held on Friday, the 10th Nov'23 inter-alia to consider, approve and take on record Audited Financial Results of the Company (Standalone & Consolidated) for the 2nd quarter and half year ended 30th Sep' 23 after the results are reviewed by the Audit Committee of the Board." Coal India is likely to consider announcement of first interim dividend in the same meeting.

Coal India Dividend History: Coal India announced 24 dividends since February 18, 2011. In the last 12 months, Coal India Ltd announced an equity dividend of Rs 24.25 per share. If the current share price of Coal India is taken into consideration, it offers a dividend yield of 8.00%, according to Trendlyne.

Coal India Valuation: According to the ICICI Securities, "Taking cognizance of the recent uptick in international coal prices and robust 6MFY24 operating performance, we raise our multiple to 8x (from 7.2x) corresponding to 2 deviations above its past five-year trading range. Our revised TP works out to INR 395 (earlier INR325). We retain BUY on the stock. Our view is also based on a sustainable dividend yield of 9% through to FY25E."

About Coal India: 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). 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.

Disclaimer:

The stock has been picked from the brokerage report of ICICI 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.