What should one do with Coal India?

Meeting the street expectation, Coal India (CIL) board yesterday approved a special dividend for the current financial year, which would fetch Rs 16485.71 crore to government exchequer and help meet its disinvestment target of Rs 40,000 crore.

The CIL board, which met late Tuesday, approved highest ever interim dividend of Rs 29 per share of face value of Rs 10.

Beside, government would also get dividend distribution tax of Rs 3,113.05 crore from CIL and its subsidiaries. Thus government would get Rs 19,598.76 crore from CIL and its subsidiaries by way of dividend and its tax.  

On the back of this development, the stock touched an intra-day high of Rs 305. However, the upmove was short lived and the stock was trading at Rs 295 at 1200 hrs.

So, is this the time to book profits or should one stay put for further upmove from current levels.

Read what Ranak Merchant, Technical Analyst - Strategies from Sushil Financial Services has to say on Coal India and the general market trends.

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