Hindustan Zinc stock rises 5% after declaring 1300% dividend

Shares of Vedanta group firm Hindustan Zinc rallied 5% to Rs 325.2 in Wednesday's trade on BSE after the company announced a fourth interim dividend of Rs 26 per share for the current financial year. The dividend outgo amounts to about Rs 10,985 crore.

The interim dividend is 1,300% on a face value of Rs 2 per equity share.

"The board of directors of the company in its meeting held on March 21 have approved a fourth interim dividend of Rs 26 per equity share i.e. 1,300% on the face value of Rs 2 per share for the financial year 2022-23 amounting to Rs 10,985 crore," the company said in a filing.

The record date for payment of the fourth interim dividend is set on March 29. The company said the dividend will be paid within stipulated timelines as prescribed under the law.

The interim dividend will be paid to shareholders whose names appear on the register of members of the company or in the records of the depositories as beneficial owners of the shares as of the record date.

In the past 12 months, Hindustan Zinc has paid an equity dividend of Rs 49.50 per share, which results in a dividend yield of 15.95%.

At 10.18 am, the stock was trading 2.8% higher at Rs 319 on BSE. It has also surged over 13% in the last six months. The stock has been under pressure since the government opposed the company's planned $2.98-billion acquisition of zinc assets from Vedanta amid concerns over valuations.

As per Trendlyne data, the average target price of Hindustan Zinc estimate is Rs 301, which shows a downside of 6% from the current market prices.

The consensus recommendation from 12 analysts for Hindustan Zinc is Sell. Out of the 12 analysts covering the stock, only two have strong buy ratings, while nine have sell ratings and only one has a hold rating.

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