Exclusive: Coal India may give Rs 4-6 per share as second interim dividend – Zee Biz analyst decodes

In an exclusive report, Zee Business senior research analyst Varun Dubey estimates that Coal India may announce a second interim dividend around Rs 4-6 per share, which is also likely to be a final dividend of FY22. He tells this during a conversation with Zee Business Managing Editor Anil Singhvi on Friday. 

Dubey lists out specific trends to explain, why Coal India is likely to announce dividend between Rs 4-6 per share. The company on February 9 said, the board to meet on February 14 to announce third quarter results, it also disclosed the record date of second interim dividend – February 22, 2022. 

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He points out, the public sector company on average, gives between Rs 7500-1000 crore dividend in a year, and it has already disbursed Rs 5500 crore as the first interim dividend so far in FY22, which comes to Rs 9 per share.   

“Besides, the dividend payout ratio of the company for the last three year had been between 43-78 per cent. In FY21, the company had made a dividend payout ratio of 78 per cent,” the analyst states. 

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As per the trend, Zee Business analyst suggests the company may do payout of around Rs 2500-3000 crore as dividend, moreover, the company also has around Rs 20000 crore cash. 

Therefore, as per 78 per cent dividend payout ratio, the per share dividend comes to Rs 15 and of which Rs 9 has already been given in the first interim dividend, Dubey further states. 

Also, as per the trend, the company on an average gives Rs 12-13 per share dividend and since it has already given Rs 9 per share dividend earlier, the lower band of second interim dividend comes around Rs 4 per share, Zee Business analyst also mentions.  

Ahead of its Q3 results and board meeting on Monday, the shares of Coal India are down over 1 per cent to touch a day’s low of Rs 165.25 per share, as against 1.59 per cent fall in the BSE Sensex.