Coal India will hold a meeting of the board of directors of the company on November 10, 2023 to consider, approve and take on record audited financial results for the second quarter
Shares of the countrys largest miner closed over 5% higher at 303.25 rupees, and were the best performers on the Nifty 50, which itself ended with a near 1% gain. The shares are up by almost a third in three months, and experts believe there is further steam for the rally to continue in the near term.
Coal India: Nuvama said with monsoon preceding and hydro and wind generation falling, demand for thermal power is set to rise further in the second half of the financial year.
"In the current global scenario, Coal India (CIL) is a pure domestic play potentially offering the triple benefits of volume growth, improved e-auction prices and possibly all-time high dividend in H2FY24. With the monsoon receding and hydro/wind generation falling, demand for thermal power is set to rise further in H2FY24," the Nuvama note said.
According to Coal India s 2022-23 annual report, the coal industry is expected to reach 1 billion tonne by 2025-26 and will grow at an annual rate of 6-7%. Despite the emphasis on renewable/non-fossil fuel-based energy, transitioning from coal is highly unlikely in the foreseeable future. Coal India s dividend outlook remains steady, supported by its robust cash position.