Coal India: Higher dividend yield to protect stock downside
Investors should watch out for e-auction premium and higher volume offtake
June 18, 2021 / 10:23 AM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
Coal India’s (CIL; CMP: Rs 152; Market Capitalisation: Rs 94,384 crore) March 2021 quarter results were above Street expectations. CIL has declared a final dividend of Rs 3.50 per share, and including the three interim dividends declared so far, the total dividend for FY21 was Rs 16 per share (dividend yield of over 10.5 per cent) as against Rs 12 per share declared in FY20.
Let us evaluate March quarter results
Production for the March 2021 quarter recovered by 30...