Sharing as to his medium term take pick, brokerage Prabhudas Lilladher said that Coal India share price is in strong trend to make higher highs and higher highs and has recently corrected.
,Coal India shares The channel fell to support during the correction. Price behavior is showing evidence that the correction may be over and the larger trend may resume,” the note said. Prabhudas Lilladher has a Buy rating on the PSU stock with a target price of Rs. Stop loss at 255 and 227.
State-owned coal mining company Coal India Limited (CIL) is the largest coal producer in the world. The PSU stock is up over 52% so far in 2022, and is currently trading at its 52-week high 237 on BSE.
With a rise of over 60% in a span of one year, Coal India shares are looking bullish. Favorable demand-supply dynamics and rising global coal demand bodes well for the state-run coal producer.
Coal India is returning cash to the shareholders by way of interim and final dividend for the quarter or year-end. In the last 12 months, Coal India Limited (CIL) has declared Equity Dividend in the form of 17 per share. at the current share price of 236.9, according to data from Trendline, has resulted in a dividend yield of more than 7%. Dividend means the distribution of surplus out of profits by a listed company to its shareholders.
Another domestic brokerage firm Motilal Oswal said in a note last week that global coal demand is expected to remain strong in the near future as the world recovers from the pandemic and Europe switches from Russian gas to renewable energy (in the long term). , the dependence on coal increases. in the near term.
“Coal India trades our FY23/24E EV/Adj at 3.0x/4.3x. EBITDA. We expect a 10% dividend yield over CMP (current market price), as we anticipate strong earnings as a result of healthy dividends going forward,” the brokerage said while maintaining its buy rating on the PSU stock and its target price. increased in 290 per (from 275).
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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