Vedanta Group Stock: Hindustan Zinc Dividend of Rs 19, August 28 Record Date; Buy/Sell/Add?

The largest integrated zinc producer in India and the second-largest in the world is Hindustan Zinc. With an annual capacity of 800 MT, the Vedanta Group firm is the third-largest silver producer globally, with more than 50 years of operating expertise. In northwest India, Hindustan Zinc maintains sulphuric acid and captive power facilities in addition to lead-zinc mines, hydrometallurgical zinc smelters, lead smelters, and pyrometallurgical lead-zinc smelters. The firm has facilities in one district of Uttarakhand and five districts of Rajasthan-Udaipur, Chittorgarh, Bhilwara, Rajsamand, and Ajmer.

Hindustan Zinc Dividend

The Board of Directors has "considered and approved the Second Interim Dividend of Rs. 19/- per equity share i.e. 950% on face value of Rs. 2/- per equity share for the Financial Year 2024-25 amounting to Rs. 8028.11 Crores. As intimated earlier, the record date for the purpose of payment of Dividend shall be Wednesday, August 28, 2024, and the Interim dividend shall be duly paid within the stipulated timelines as prescribed under law," said Hindustan Zinc in a stock exchange filing.

Hindustan Zinc Q1 Results

By the end of the June 2024 quarter, Vedanta held a 64.92% stake in Hindustan Zinc. Hindustan Zinc said that its consolidated net profit for the June quarter jumped by 19% to Rs 2,345 crore from Rs 1,964 crore in Q1FY24 or a growth of 19% year on year. From Rs 3,347 crore in Q1FY25 to Rs 3,946 crore in Q1FY24, Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) shot up by 18%. EBITDA margins grew to 48.5% from 46% in the year-ago quarter, a 250 basis point growth. In Q1FY25, the company's revenue from operations improved 11% YoY to Rs 7,893 crore.

Hindustan Zinc Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said, "HINDZINC has recently shown signs of stabilization after a sharp decline, indicating a potential shift in market sentiment. The stock is currently trading at a CMP of Rs 514 and is holding above the 200-day EMA, a critical long-term support level at Rs 488.02. The Relative Strength Index (RSI) has dipped into oversold territory, currently around 31, which is often a precursor to a price rebound."

"Additionally, the stock is showing early signs of positive divergence, where the RSI starts to rise even as the stock price continues to fall or remains flat. Key support is at Rs 488.02, while immediate resistance is near Rs 561 and Rs 570, respectively. In conclusion, if HINDZINC can sustain its position above the 200-day EMA and attract more buying interest, a successful breach above the immediate resistance levels could further confirm the start of a new uptrend, offering a positive outlook for the stock in the near term," Deven Mehata further commented.

Disclaimer

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