state ownership Coal India Limited (CIL) Consolidated net profit up 48% 4,558 crore for the third quarter ended December, on the back of higher revenue from operations. In addition, the Board approved the payment of the second interim dividend: 5 per share for the current financial year 2021-2022.
PSU company declares second interim dividend of 5 per share, above Already declared in December 9, regarding total dividend 14/sh for FY22-TD (81% payout). ICICI Securities believes that the final dividend will be at least 4/ The share will also be distributed.
The brokerage has maintained its buy rating on the shares of Coal India with a target price of 234, indicating a potential increase of over 40% from current levels.
“High demand for domestic coal due to higher thermal power PLF, and increase in international coal prices as a result of higher e-auction volume and premium, we are confident that CIL will outperform its growth in Q4FY22,” the note said. Though cost pressures continue, ICICI Securities believes are severe on multiple fronts, and are capped by higher volumes and realizations, price hikes being the only sustainable means of countering cost escalation.
The company posted a strong sequential rebound in margins in 3QFY22, though it missed Motilal Oswal’s estimate of higher RM costs and contractual expenses. It expects further improvement in profitability in 4QFY22 on account of strong e-auction premium.
Maintaining its buyout, the brokerage said, “Coal India is in a comfortable position to meet India’s growing demand, given its vast resources and number of projects in the development stage that are likely to be delivered in the next two to three years. Is.” Rating on PSU Stock with target price of 217 per share (over 30%).
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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