Coal India stock at discount to historical average, to pay dividend of ₹15 by 6 Dec
2 min read . Updated: 08 Nov 2022, 09:31 PM IST
Premium- Coal India stocks are currently trading at a discount on Nifty to their 10-year historical averages. That being said, the stock is affordable and cheaper. Those who are looking to buy Coal India shares to enjoy the dividend benefits will have to keep in check a few important dates.
Investors of Coal India are in for a treat! The largest government-owned coal-producer in the world, Coal India has announced an interim dividend of a whopping ₹15 per equity share for its shareholders for the fiscal FY23. Coal India stocks are currently trading at a discount on Nifty to their 10-year historical averages. That being said, the stock is affordable and cheaper. Those who are looking to buy Coal India shares to enjoy the dividend benefits will have to keep in check a few important dates.
On Monday, Coal India announced an interim dividend of ₹15 per equity share having a face value of ₹10 each. The company fixed November 16 as the record date for determining the eligible shareholders.
This means, Coal India shares will turn ex-dividend on November 15. Ex-dividend date is the day the price of the equity shares of a company gets adjusted for the dividend payout. It is one working day before the record date.
Before the ex-dividend date, there is cum dividend date which is one day prior to the ex-date and two days before the record date. Cum dividend date is the date to buy shares to be eligible to receive a dividend.
Generally, it takes about one to two days for shares to get credited to your Demat account after the actual purchase day on stock exchanges. Thereby, ensure to make your buying accordingly so that the shares are visible in your Demat account on the record date.
As per BSE, Coal India has a settlement type of 'T+2'. Simply put, T+2 means that any buy or sell in stock will take two days time to reflect in the investors' Demat account.
Coal India plans to the interim dividend by December 6, 2022.
According to Motilal Oswal's data, in October, the stock managed to gain by around 16%. So far in 2022, Coal India has surged by 68%. However, the company's stock is trading at a discount of 38% from its 10-year average.
Coal India stock will be in focus when markets open tomorrow after announcing strong growth in earnings during Q2FY23.
The company beats street expectations and reports a Q2FY23 PAT of ₹6,043.55 crore rising by 106% from ₹2,936.91 crore in the year-ago period. Consolidated revenue from operations increased to ₹29,838 crore, compared with ₹23,291 crore in the same period last year.
Coal India, which produces about 80% of India’s coal, shipped almost 5% more of the fuel during the period and earned a higher average price on those sales, the company said.
