Moneycontrol
Last Updated : Mar 12, 2018 12:00 PM IST | Source: Moneycontrol.com

Goldman Sachs maintains sell on Coal India, high dividend payout to limit capex growth

The company approved payment of interim dividend for the financial year 2017-18 at Rs 16.50 per share of the face value of Rs 10 as recommended by the audit committee of company in its meeting.

 
 
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Shares of Coal India declined 3 percent intraday Monday as brokerages maintained sell to underweight rating on the stock.

The company approved payment of interim dividend for the financial year 2017-18 at Rs 16.50 per share of the face value of Rs 10 as recommended by the audit committee of company in its meeting.

The company has fixed March 19, 2018 as revised record date for the purpose of payment of interim dividend on equity shares for the Financial Year 2017-18.

The date of payment of interim dividend is on and from March 23, 2018.

Brokerage: Goldman Sachs | Rating: Sell | Target: Rs 270

Goldman Sachs has maintained sell rating on the stock with a target of Rs 270 per share.

According to Goldman Sachs company’s payout can sustain over next 3 years, while high dividend payout to limit capex growth.

Brokerage: Morgan Stanley | Rating: Underweight | Target: Rs 221

Brokerage house Morgan Stanley has kept underweight rating on the stock with a target of Rs 221.

The firm believes that the dividend is marginally higher than estimate of Rs 14 per share.

Brokerage: Nomura | Rating: Neutral

Broking firm Nomura has maintained neutral rating on stock as stock trades at 6.2x FY19F adjusted EV/EBITDA. It feels that FY18 dividend of Rs 16.50 per share is broadly in line with consensus.

The total cash outgo due to dividend will be Rs 12,320 crore and Rs 16.5 per share dividend works to at 5.4 percent yield, it added.

The government share of dividend payout will be Rs 10,120 crore.

It has maintained its earnings estimates for the stock and nominal final dividend cannot be ruled out this year.

At 11:54 hrs Coal India was quoting at Rs 297.60, down Rs 7.10, or 2.33 percent on the BSE.

Posted by Rakesh Patil
First Published on Mar 12, 2018 12:00 pm
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