The shares of Coal India jumped to a 3-year high on Wednesday on the back of a strong second-quarter performance and the PSU announcing an interim dividend of Rs 15 per share.
The stock hit Rs 263.30 on the BSE and ended at Rs 255.95. It had previously reached a high of Rs 263.05 on June 26, 2019.
Coal India has posted a 106 per cent year-on-year growth in consolidated net profit at Rs 6,044 crore, and on Wednesday said that its capital expenditure has soared 33 per cent on an yearly basis in the first half of 2022-23.
Brokerages remained bullish on the stock as the company recorded its highest-ever second-quarter EBITDA.
“We believe the world has come to terms that fossil fuel cannot be ignored, at least in the near term. Under investment by the developed economies in the last decade has proven expensive with no alternate sources to Russian natural gas in sight other than coal,” Motilal Oswal said in its recent note.
One of the key bottomline drivers for Coal India has been earnings from electronic auction.