Government company will give a huge dividend of Rs 30 per share, know what will be the benefit

Investors of government-owned coal company Coal India Limited (CIL) are going to get a big gift. The company will give the biggest dividend ever to its investors. For fiscal year 2024, Coal India Limited may pay a dividend (DPS) of Rs 30 per share to its investors. Nuvama estimated Coal India Ltd’s DPS estimate to be above Rs 20, based on which the annual dividend yield could be around 21 per cent.
Coal India expected to get triple profit – Nuwama
This dividend payment is expected to be received in the second half of fiscal year 2024. According to national brokerage Nuvama, there are good signs for Coal India ahead of the pre-election year. Nuvama says that considering the current global scenario, Coal India gets triple benefit. This will provide volume growth, better e-auction pricing and possibly the largest dividend in history.
Coal India’s dividend yield has been excellent
Nuvama also believes that the end of the monsoon season and decline in hydroelectric and wind power generation will lead to an increase in demand for thermal energy and its positive impact will be visible on Coal India Limited in the second half of FY2024. also believes that Coal India’s DPS estimate for FY2025 could be Rs 25 per share, while the dividend yield for FY2023 is 8.4 per cent.
Strong increase in electronic auction premium
Keeping in mind the rise in global coal prices, it said the e-auction premium could be 106 per cent in September, compared to 54 per cent in June. Due to the boom in global industrial activities, global coal prices are increasing and Coal India is also no exception to this. Nuvama also increased Coal India’s EBITDA estimate to 9% from 8% and the reason behind this was that the price and volume of e-auction is expected to increase.