Hindustan Zinc Trades Ex-Dividend For 300%: Buy/Sell Or Hold?

Hindustan Zinc declared an interim dividend earlier this month for the financial year 2023-24, amounting to Rs 6 per share, or 300% of the share's face value of Rs 2. Thursday, December 14, 2023 is the record date for the interim dividend distribution, as previously announced. Since the company uses the T+1 settlement method, today the stock shall trade ex-dividend.

Hindustan Zinc has announced an equity dividend of 3775.00% at a face value of Rs, or Rs 75.5 per share, for the fiscal year ending in March 2023. This generates a dividend yield of 23.2% at the current share price of Rs 320. For the past five years, the firm has regularly distributed dividends and has a strong dividend track record. Since June 28, 2001, Hindustan Zinc Ltd. has issued 41 dividends, according to Trendlyne statistics.

Hindustan Zinc Share Price Target

HINDZINC is anticipated to find support within the 300 to 310 range, making it an opportune level for those seeking optimal buying points. The current Relative Strength Index (RSI) stands at 67 on the daily timeframe, 57 on the weekly timeframe, and 56 on the monthly timeframe, suggesting enthusiastic buying activity within the specified range. If considering an immediate purchase, be prepared for potential averaging, as there is a notable likelihood of a test within the 300 to 310 range in the near future. The current trading price is at 324, as stated by V.L.A. Ambala, a SEBI Registered Research Analyst and Co-Founder of Stock Market Today (SMT).

Hindustan Zinc Financials

Hindustan Zinc Ltd recorded a 35.5% decrease in net profit from Rs 2,680 crore in the same time last year to Rs 1,729 crore during the second quarter of FY24. The company's revenue from operations in Q2FY24 decreased by 18.5% year on year 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 dropped from 52.9% to 46.2% YoY, a decrease of 670 basis points (bps).

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.