Hindustan Zinc shares to turn ex-dividend today; Vedanta in focus; key details

Shares of Vedanta-led Hindustan Zinc Ltd will turn ex-date for dividend today. India's largest and the world's second largest integrated producer of zinc and lead had earlier announced a second interim dividend of Rs 19 per equity share for the financial year 2024-25, amounting to Rs 8,028.11 crore. Vedanta, which held 2,74,31,54,310 shares, or 64.92 per cent stake, in Hindustan Zinc as on June 30, would receive Rs 5,212 crore in dividend payments.

Today is also the record date for the purpose of determining eligible Hindustan Zinc Ltd shareholders. All eligible shareholders of Hindustan Zinc with their names in the list at the end of record date will be eligible to receive dividend. The actual payment will be made on September 19.

"The Board of Directors of Hindustan Zinc Limited (“the Company”), at its meeting held today i.e. Tuesday, August 20, 2024, 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," Hindustan Zinc said earlier.

With the approval to transfer general reserve to retained earnings, Nuvama expects Hindustan Zinc to provide an additional dividend, resulting in a total dividend per share of Rs 40 per share in FY25. It, however, maintained ‘Reduce’ on the stock due to expensive valuations. It suggested a target price of Rs 339 for the stock. Hindustan Zinc declared an interim dividend of Rs 10 per share earlier. With this, it has announced Rs 29 per share dividend in FY25 so far.

On Tuesday, Hindustan Zinc shares settled at Rs 532.25 on BSE. The scrip is down 16 per cent in the past one month but is still up 67 per cent for 2024 so far.

A few other analysts are positive on Hindustan Zinc, given its presence in the lower end of the global cost curve facilitated by high grade captive mines sufficient to meet requirements for decades, 100 per cent captive power plants, sizable scale, diversified revenue stream with increasing contribution from silver sales. Hindustan Zinc is looking to expand its zinc product portfolio with EcoZen, a low-carbon green zinc offering primarily targeted at European markets, JM Financial said while suggesting a target price of Rs 540 on the stock.

Earlier, Vedanta Ltd raised around Rs 3,200 crore from its OFS in Hindustan Zinc. Vedanta is seen utilising the proceeds generated from the OFS for deleveraging its balance sheet and investment in its growth projects. This, coupled with the Rs 8,500 crore qualified institutional placement, is seen helping it bring down its debt.