Hindustan Zinc Share Price Jumps – Here’s Why Traders Are Excited
So Hindustan Zinc shares are up again today—no surprise there. The stock climbed over 2% after the company announced yet another dividend payout. That’s 20 quarters in a row now. Not bad for a Vedanta Group company, right? But here’s the thing: is this just short-term excitement, or is there more to the story? Let’s break it down.
What’s Happening With the Stock Today?
It started slow—opened at ₹518.50, slightly lower than yesterday’s close. But by lunchtime? Boom. Hit ₹530 before cooling off a bit. Volume’s up too, about 1.5 times the usual. From what I’m hearing, the big boys (read: institutional investors) jumped in after the dividend news. Classic case of money chasing yield.
About That Dividend Announcement
They’re paying ₹10 per share this time around. Record date’s June 21. Now, compare that to last year’s ₹35.5 and FY24’s ₹75.5—it’s smaller, sure. But declaring it this early? That’s confidence. Like they’re saying, “Don’t worry, we’ve got this.”
“At current prices, you’re looking at a 2% yield just from this dividend,” says Ritesh Shah from Nuvama. “Add potential price gains, and total returns could hit 15-18% annualized.” Not too shabby.
Why This Matters More Than Just the Cash
Look, dividends are nice. But there’s bigger picture stuff here:
- Cash machine: Zero debt. ₹7,500 crore just sitting there. Even if zinc prices dip—which they might—this company can keep paying out.
- Zinc’s looking good: LME inventories? Lowest in 16 months. Prices holding above $2,800/ton. That helps.
- Government stake: That 29.5% overhang? Might finally get sorted post-elections. CLSA seems to think so.
See what I mean? It’s not just about today’s pop.
What the Analysts Are Saying
As usual, they can’t agree on anything:
| Brokerage | Rating | Price Target |
|---|---|---|
| Jefferies | Buy | ₹600 |
| Motilal Oswal | Neutral | ₹525 |
Risks? Sure. Mining royalties could go up. And Vedanta’s own debt issues might spill over. But that’s always the case with these things, isn’t it?
Should You Buy, Hold, or Sell?
Fundamentally: Trading at 12x FY25 earnings. Cheaper than Hindalco, pricier than Korea Zinc. Dividend yield around 5.3%—not the highest they’ve offered, but still decent.
Technically: Just crossed the 200-day moving average. Next big test at ₹545. If it breaks through that, could run further.
The Bottom Line
Here’s how I see it: the dividend’s nice for short-term traders. But long-term? Watch China’s infrastructure spending and how our auto sector does. Personally, I’d hold for now—maybe buy a little more if it dips below ₹500 again. Just don’t expect those FY24-level payouts to come back anytime soon.
Quick Answers to Common Questions
Q: When do I need to own the shares to get the dividend?
A: June 21 is the record date. Own them by then or you’re out of luck.
Q: How often do they pay dividends?
A: Usually every quarter, with a bigger one thrown in when annual results come out.
Source: Livemint – Markets
