Hindustan Zinc Just Did THIS – Investors Are Cheering!

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