24% Dividend Yield: Hindustan Zinc Okays 2nd Interim Dividend of Rs 6/Share; Buy?

One of the most well-liked companies for investors searching for consistent dividend payments is Hindustan Zinc (HZL). One of the stocks with a high dividend yield in FY23 is Hindustan Zinc (HZL). HZL declared an interim dividend of Rs 7 per share for FY24 earlier in July amounting to Rs 2,957.72 crore. This is the first distribution for FY24 But for FY24, the company has once more announced a second interim dividend of 300%. The specifics are shown below.

Hindustan Zinc Dividend

"We wish to inform you that the Board of Directors of the Company through resolution passed by circulation on Wednesday, December 06, 2023 have approved 2nd Interim Dividend of Rs. 6 per equity share i.e. 300% on face value of Rs. 2/- per share for the Financial Year 2023-24 amounting to Rs. 2535.19 Crores. The record date for the purpose of payment of interim dividend, as already communicated is Thursday, December 14, 2023. The interim dividend will be paid within stipulated timelines as prescribed under law," said the company in a stock exchange filing.

Since June 28, 2001, Hindustan Zinc Ltd. has issued 41 dividends, according to Trendlyne statistics. Hindustan Zinc has announced an equity dividend of 3775.00% at a face value of Rs 2 for the fiscal year that ended in March 2023. This translates to Rs 75.5 per share. This generates a dividend yield of 23.34% at the current share price of Rs 323.50. For the past five years, the firm has regularly declared dividends and has a strong dividend track record.

Hindustan Zinc Financials

For the second quarter of FY24, the firm recorded a net profit of Rs 1,729 crore, a 35.5% decrease from Rs 2,680 crore during the same time the previous year. The company's revenue from operations in Q2FY24 dropped 18.5% YoY to Rs 6,792 crore from Rs 8,336 crore in Q2FY23. EBITDA dropped by 29% to Rs 3,139 crore in the September quarter compared to Rs 4,407 crore in the same period the previous year. The EBITDA margin plummeted from 52.9% in Q2FY23 to 46.2% in Q2FY24, a drop of 670 basis points (bps).

Hindustan Zinc Share Price Target

Deven Mehata-Equity Research Analyst at Choice Broking said, "HINDZINC, presently trading at 325 levels, has shown a notable 10% rally over the past four days, reaching a high of 332. This peak coincides with a historical resistance level, potentially prompting profit-taking from this juncture. The stock enjoys robust support within the 310-315 range, in close proximity to the 200-Day Exponential Moving Average (EMA), enhancing its stability."

"Short-term traders who entered at lower levels are advised to consider booking partial profits, safeguarding gains while setting a trailing stop loss at the support level of 310. Meanwhile, investors with a longer time horizon may find value in accumulating the stock on dips. Crucially, HINDZINC is trading above all significant moving averages, affirming its strength for the long term. This technical analysis offers insights for both short-term traders and long-term investors, emphasizing prudent risk management and strategic entry points based on evolving market conditions," the analyst further added.

Disclaimer

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