Coal India's Shares Soar on Record Dividend Outlook
COAL & MINING

Coal India's Shares Soar on Record Dividend Outlook

Shares of Coal India reached their highest levels in nearly five years due to expectations of an all-time high dividend for the current fiscal year. This surge is attributed to robust sales volumes and improved pricing in e-auctions.

The country's largest coal miner saw its shares close more than 5 per cent higher at 303.25 rupees, making them the top performers on the Nifty 50, which itself ended the day with nearly a 1 per cent gain. Over the past three months, Coal India's shares have risen by almost a third, and experts anticipate further upward momentum in the near term.

Analysts Ashish Kejriwal and Jyoti Singh of Nuvama Institutional Equities project a dividend payout of 30 rupees for 2023-24, assisted by an expected generation of free cash flow totalling around Rs 220 billion during the year. The dividend payout could be interim and is likely to be distributed between October and March.

According to Atul Chaturvedi of Antique Stock Broking, on technical charts, Coal India's shares are poised to rise to around 340 rupees in the near term. He recommends buying the stock at current levels and during corrections to around 290 rupees, with a timeframe of approximately one month.

During the April to September period, the state-owned miner increased its production by more than 11 per cent, with sales volumes rising by nearly 9 per cent year-on-year. Notably, the company's supplies to the power sector have also increased by more than 3 per cent.

Analysts at Nuvama expect Coal India's volume to grow at a 6 per cent compound annual growth rate (CAGR) to reach 827 million tonnes over the period from FY23 to FY26. Furthermore, coal prices are expected to remain firm due to the diversion of supplies from non-power to the power sector and recent price increases in international coal markets.

Shares of Coal India reached their highest levels in nearly five years due to expectations of an all-time high dividend for the current fiscal year. This surge is attributed to robust sales volumes and improved pricing in e-auctions. The country's largest coal miner saw its shares close more than 5 per cent higher at 303.25 rupees, making them the top performers on the Nifty 50, which itself ended the day with nearly a 1 per cent gain. Over the past three months, Coal India's shares have risen by almost a third, and experts anticipate further upward momentum in the near term. Analysts Ashish Kejriwal and Jyoti Singh of Nuvama Institutional Equities project a dividend payout of 30 rupees for 2023-24, assisted by an expected generation of free cash flow totalling around Rs 220 billion during the year. The dividend payout could be interim and is likely to be distributed between October and March. According to Atul Chaturvedi of Antique Stock Broking, on technical charts, Coal India's shares are poised to rise to around 340 rupees in the near term. He recommends buying the stock at current levels and during corrections to around 290 rupees, with a timeframe of approximately one month. During the April to September period, the state-owned miner increased its production by more than 11 per cent, with sales volumes rising by nearly 9 per cent year-on-year. Notably, the company's supplies to the power sector have also increased by more than 3 per cent. Analysts at Nuvama expect Coal India's volume to grow at a 6 per cent compound annual growth rate (CAGR) to reach 827 million tonnes over the period from FY23 to FY26. Furthermore, coal prices are expected to remain firm due to the diversion of supplies from non-power to the power sector and recent price increases in international coal markets.

Next Story
Infrastructure Urban

Honeywell Unveils AI Tools to Enhance Green Hydrogen Efficiency

"Honeywell has introduced Honeywell Protonium, a comprehensive suite of advanced technologies driven by artificial intelligence (AI) and machine learning (ML), aimed at improving the efficiency, scalability, and cost-effectiveness of green hydrogen production. The technology is designed to address key industry challenges such as power intermittency, high production costs, and carbon intensity, thereby facilitating the wider adoption of clean hydrogen as a sustainable energy source.The first deployment of Honeywell Protonium will take place at Aternium, a US-based large-scale clean hydrogen pro..

Next Story
Infrastructure Transport

NHAI Plans Link Road for Expressway Access

The National Highways Authority of India (NHAI) is evaluating the construction of an 18 km road to connect the Bengaluru-Chennai Expressway, within Karnataka, to the Bengaluru-Kolar Highway (NH 75). This strategic link is aimed at improving connectivity for motorists travelling towards the Andhra Pradesh border, including destinations like Chittoor and Tirupati. Currently, a 68 km section of the expressway — from Hoskote to Bethamangala near Kolar Gold Fields (KGF) — is operational. However, due to the absence of seamless end-to-end connectivity, users are forced to navigate through narr..

Next Story
Infrastructure Transport

Bengaluru to Get 40-Km Signal-Free Transit Corridor

In a major push to modernize Bengaluru’s transport infrastructure, the Karnataka Government has approved the construction of a 32.15 km double-decker flyover with a metro line along the city’s Outer Ring Road. This transformative initiative aims to ease the daily commute for thousands and provide lasting relief from the city's chronic traffic congestion. In tandem, an additional 8 km elevated stretch will be constructed on Magadi Road as part of Namma Metro’s Phase III expansion. Together, these projects will add over 40 km of new, signal-free metro routes—making daily travel faster, ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?