Hindustan Zinc is a crown jewel for Vedanta, said billionaire Anil Agarwal on his metal giants. The billionaire shared the extraordinary performance of Hindustan Zinc in the past two decades. He shed light on its impressive returns to shareholders and hefty dividend payout. This comes at a time when Hindustan Zinc is in focus on its upcoming second interim dividend payout of 950% or Rs 19 per share for FY25, for which it will turn ex-dividend later in the current week. Is it time to buy HZL shares?
Hindustan Zinc Share Price:
After market hours of August 26, HZL's share ended at Rs 528.20 apiece, up by 2.8% on BSE with a market cap of Rs 2,23,181.35 crore. The stock's 52-week high and low are at Rs 807 apiece and Rs 285 apiece respectively.
In five days, HZL shares are up by 6%, while in six months, it zoomed by 70%. Further, year-to-date, HZL shares are up by 66%. In a year, the stock advanced by 67%. But HZL's all-time gain is a massive 47,918.18%.
Anil Agarwal On Hindustan Zinc:
Through his X handler, Agarwal said, "Hindustan Zinc is a crown jewel for Vedanta," adding, "As the world's 2nd largest integrated producer of Zinc and 3rd largest Silver producer HZL continues to create immense value for all its shareholders."
Agarwal added, "It makes me proud to share that in the past 2 decades, HZL has delivered total shareholder returns of 562x. In the past 10 years itself, HZL's dividend payouts are over Rs. 1.1 lakh crore - amongst the highest in the country."
Further, Agarwal revealed that committed to nation-building, Hindustan Zinc has contributed around Rs. 80,000 crores to the national exchequer in the last 5 years.
He also said, "The future for HZL shines bright as it supplies both Zinc & Silver, which are key minerals for national security and drives up capacities for both with a strong focus on recycling and future minerals. Let's stay single-mindedly focused on serving the needs of a rapidly growing nation."
Hindustan Zinc Dividend:
As per the latest regulatory filing, Hindustan Zinc has announced its second interim dividend of Rs. 19/- per equity share i.e. 950% on the face value of Rs. 2/- per equity share for the Financial Year 2024-25 amounting to Rs. 8028.11 Crore.
Since June 2001, the company has paid a whopping 43 dividends. And on the current market price, it has a dividend yield of 3.13%.
Earlier, Hindustan Zinc turned ex-dividend in May 2024, for its first interim dividend of Rs 10 per share for FY25.
Among other corporate actions, HZL carried one bonus issue in March 2011 in the ratio of 1:1. While its only stock split was also done in March of that year, in the ratio of 1:5 where face value of Rs 10 each was split to Rs 2 each.
Should Investors Look Into HZL Shares Before Ex-Dividend?
As per Simply Wall Street, earnings per share have barely grown, and although Hindustan Zinc paid out over half its earnings and free cash flow last year, the payout ratios are within a normal range for most companies. In summary, it's hard to get excited about Hindustan Zinc from a dividend perspective.
Data from BSE showed that HZL has an earnings per share of Rs 19.35, while its price-to-equity ratio is at 27.30x, and its price-to-book ratio is at 14.65x. However, its return on equity is strong at 53.67%.
Meanwhile, as per Trendlyne data, the consensus recommendation from 12 analysts for Hindustan Zinc Ltd. is SELL. Nonetheless, EPS is expected to grow by 31.0% in FY25.
Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the article mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.
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