Coal India's Q3 Profit jumps to Rs 9,069 Crore, announces Rs 5.25 per share Interim Dividend

By siliconindia  |  Tuesday, 13 February 2024, 09:53:21 AM IST

Coal India's Q3 Profit jumps to Rs 9,069 Crore, announces Rs 5.25 per share Interim Dividend
Coal India, a state-run entity, witnessed a notable increase in its net profit, rising to Rs 9,069 crore in the December quarter compared to Rs 6,799 crore in the preceding quarter. The board has declared an interim dividend of Rs 5.25 per share. In the same period last year, the company's consolidated net profit amounted to Rs 7,755.55 crore.
In the October-December period, Coal India saw its consolidated revenue from operations rise to Rs 36,153.97 crore from Rs 35,169.33 crore recorded a year earlier. Coal India Limited (CIL) constitutes more than 80 percent of the country's domestic coal production. On Monday, shares of Coal India experienced a nearly 5 percent decrease, closing at Rs 433.05 on the BSE.
In the previous month, Motilal Oswal Securities expressed confidence in Coal India's ability to seize forthcoming growth opportunities. The brokerage firm noted that the coal company had heightened its emphasis on capital expenditure, particularly aimed at enhancing its evacuation infrastructure. Previously ranging between Rs 6,500-8,500 crore until FY20, the capital expenditure tripled in FY23 to Rs 18,600 crore.
"Over the last three years, capex has exceeded budget estimates. Coal India trades at an EV/adjusted FY26 EBITDA of 4.2 times. We roll forward our estimates to FY26. We reiterate our BUY rating on the stock with a target of Rs 430 (premised on 5 times FY26E EV/Ebitda). We believe Coal India is well placed to capitalize on the growth opportunity ahead", this brokerage said.
Sharekhan, maintaining its 'Buy' rating on the stock, adjusted its target price to Rs 440. They highlighted that Coal India's stock valuation, standing at 7 times FY2026 earnings per share (EPS), was appealing. Additionally, the stock presented a significant dividend yield of 8-9 percent.

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