Nearly Double in 1 Year: Why this dividend-paying multibagger PSU stock turned heads on Nifty 50 today

Coal India Share Price: Coal India shares had the biggest jump in nearly two weeks on NSE on Wednesday (May 15, 2024) as it emerged as the top gainer on Nifty 50 today.
The stock that closed trading at Rs 448.60 a day ago rose by 4.75 per cent to the day's high of Rs 470.00 on Wednesday.

Coal India shares ended the session on Wednesday higher by 4.19 per cent, or Rs 18.80, at Rs 467.50.

The miner was also the second-highest contributor to Nifty 50 on Wednesday after Bharti Airtel.

Its surge on Wednesday was also its biggest jump since May 3, when it had soared by 4.75 per to Rs 474.80.

Why Coal India topped Nifty 50 chart today

The surge in the stock was seen after a Reuters report quoting VL Kantha Rao, Secretary of Mines, said that Coal India and NMDC were assessing lithium mines in Australia and Chile to get critical minerals.

Rao said that the ministry was also encouraging other state-owned companies, such as ONGC Videsh, to scout for critical minerals overseas.

Rao said that Coal India was actively pursuing some lithium blocks in Chile.

"So, Coal India is getting active… NMDC is already active in Australia. They have some gold mines in Australia and are also looking at lithium mines in Australia,” Rao explained.

Nearly 97% rise in 1 year

On the back of some of the large-sized orders, Coal India has skyrocketed by nearly 97 per cent from its price of Rs 237.80 a year ago to the current closing price of 237.80.

The mining PSU has been regular in paying dividends to its shareholders. 

Coal India announced its last two interim dividends on February 20, 2024, and November 21, 2023.