Should you buy, hold or sell Coal India shares after Q3 results, dividend announcement?

Coal India shares held on to the green higher on Wednesday, a day after the state-run company reported its financial results and announced a dividend payout. The CIL stock gained almost two per cent to Rs 228.8 apiece on BSE.

Coal India Q3 Results

CIL reported a 70.1 per cent jump in consolidated net profit to Rs 7,755.5 crore for the quarter ended December 2022 compared with the corresponding period a year ago driven by higher sales.

According to Zee Business research, the coal behemoth's quarterly profit was expected at Rs 8,430 crore.

Its consolidated revenue went up 24 per cent to Rs 35,169 crore on a year-on-year basis, according to a regulatory filing.

Coal India Dividend 2023

The company declared a second interim dividend, of Rs 5.25 per share, for the current financial year. It fixed February 8 as the record date for the dividend, and said the payout will take place by March 2.

What brokerages make of Coal India results and dividend

Jefferies maintained a ‘hold’ rating on the CIL stock and raised its target price by Rs 5 to Rs 225.

The brokerage said Coal India's Q3 cash EBITDA came in above its estimates on the back of better-than-expected realisations. Jefferies highlighted easing of global coal prices and higher staff costs as headwinds for the company in the year ending March 2024.

Coal India: Share price history

The PSU stock has strengthened more than 38 per cent in value in the last one year, a period in which the Sensex headline indices has risen 1.9 per cent.

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