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Coal India: A Reliable Dividend Giant with Big Plans in 2025


 

Coal India

Coal India Limited (CIL) is one of India’s most important public sector companies. It supplies over 80% of the country’s coal and plays a big role in keeping the lights on across homes, industries, and railways.

It’s not just the size that makes Coal India attractive—it’s also known for regularly rewarding shareholders with dividends. That means if you own shares in this company, you’re likely to get regular payouts.

Dividend History: A Treat for Investors

If you're looking for a stock that gives back, Coal India is hard to beat. It has a long-standing habit of paying healthy dividends every year. Here’s a quick look at its recent performance:

  • January 2025: Paid an interim dividend of ₹5.60 per share

  • October 2024: Paid an interim dividend of ₹15.75 per share

  • May 2024: Paid a final dividend of ₹5.00 per share

That adds up to a total of ₹26.35 per share in the last year, which works out to a dividend yield of around 6.65%—much higher than what banks offer on savings accounts.

For long-term investors who like steady income, this is a great reason to keep Coal India on your radar.

What’s New in 2025?

Coal India isn’t just sitting on past success. It’s making bold moves this year.

1. Big Power Plant in Jharkhand

In April 2025, Coal India teamed up with Damodar Valley Corporation to build a massive 1,600 MW coal-based power plant in Jharkhand. That’s a big boost to India’s energy supply and a smart move for future growth.

2. More Power Projects in the Pipeline

That’s not all—they're also building:

  • Two 660 MW units in Madhya Pradesh

  • Another 1,600 MW plant in Odisha

These projects are part of India's plan to meet rising electricity demand with reliable power sources.

3. Helping Businesses Save

In March, Coal India made things easier for non-power industries. They waived a financial requirement that made it expensive for companies to get coal via rail. This small change helps businesses manage costs better and shows CIL's commitment to customer satisfaction.

Financial Snapshot

Coal India is making strong profits. In the December 2024 quarter, they earned a total income of ₹37,923 crore and a profit of ₹8,420 crore. That kind of performance explains why so many analysts are bullish on the stock.

What Analysts Say

  • Motilal Oswal recommends Coal India with a price target of ₹485. That’s a solid upside from current levels.

  • ICICI Securities has a buy call too, targeting ₹440, highlighting the strong dividend and expansion plans.

Why You Should Watch Coal India

  • Steady Dividends – Reliable income for investors

  • Government-Backed – Being a PSU gives it stability

  • Growth Projects – Big investments in power projects

  • Strong Profits – Healthy financials and market confidence

If you're a long-term investor who likes safety, income, and steady growth, Coal India is worth considering.

Disclaimer

This blog is for informational purposes only. It is not financial advice. Always do your own research or talk to a certified financial advisor before making any investment decisions

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