Coal India gains on buzz of hefty interim dividend

Coal India rose 2.53% to Rs 296.05 at 15:23 IST on BSE, with the stock extending Wednesday's 4.77% gains triggered by speculation that the company may announce a hefty interim dividend next week.

Meanwhile, the S&P BSE Sensex was down 6.16 points or 0.03% at 20,723.22.

On BSE, so far 3.56 lakh shares were traded in the counter as against average daily volume of 2.66 lakh shares in the past one quarter.

The stock hit a high of Rs 296.65 and a low of Rs 289.60 so far during the day. The stock had hit a 52-week high of Rs 372.10 on 10 January 2013. The stock had hit a record low of Rs 238.35 on 30 August 2013.

The stock had outperformed the market over the past one month till 8 January 2014, sliding 0.29% compared with the Sensex's 1.27% fall. The scrip had, however, underperformed the market in past one quarter, declining 2.63% as against the Sensex's 3.73% rise.

The large-cap company has equity capital of Rs 6316.36 crore. Face value per share is Rs 10.

Shares of Coal India have risen 7.42% in two trading sessions from a recent low of Rs 275.60 on 7 January 2014, after the company during trading hours on Wednesday, 8 January 2014, said that a meeting of the board of directors of the company will be held on 14 January, 2014, to consider payment of interim dividend, if any, for the year ending 31 March 2014. The stock had risen 4.77% to settle at Rs 288.75 on Wednesday, 8 January 2014.

Coal India has fixed 20 January 2014 as the record date for the purpose of payment of interim divided.

The market has been abuzz with rumours that the government may force cash rich state-run firms to declare hefty interim dividend to enable the government to meet the fiscal deficit target for the current year.

Coal India's consolidated net profit declined 0.8% to Rs 3052.36 crore on 5.8% growth in net sales to Rs 15411.49 crore in Q2 September 2013 over Q2 September 2012.

Coal India is the largest coal producer in the world.

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