After the announcement of dividend, Hindustan Zinc shares increase by 5%

Hindustan Zinc shares increase by 5%

Following the announcement of an interim dividend of Rs. 26 per share, shares of Hindustan Zinc jumped significantly in trading on Wednesday. The stock increased 4.77 percent from its previous closing of Rs 310.45 to a day high of Rs 325.25. For the current fiscal year, the corporate board has recommended a fourth interim dividend of Rs. 26 per equity share. (2022-23). An expenditure of Rs 10,986 crore would result from the dividend of Rs 26 for each share with a face value of Rs 2. March 29 is the record date for the dividend payout. For this fiscal year, the corporation has declared an add-up dividend of Rs 75.50 per share, or Rs 32,000 crore.

A brief about after the announcement of dividend, Hindustan Zinc shares increase by 5%

In terms of earnings, a Vedanta subsidiary reported a profit of Rs 2,157 crore for the quarter ending in December 2022 (Q3 FY23), 20.14% less than the profit of Rs 2,701 crore reported during the same time the previous year.

A support level on the counter could be identified at Rs. 318, according to one analyst, while Hindustan Zinc appeared to be “weak,” according to another.

At Anand Rathi Shares & Stock Brokers, Ganesh Dongre, Senior Manager – Technical Research Analyst, stated, “The stock has dropped substantially from its one-year high of Rs 383, achieved on January 19 of this year. It has produced a bullish hammer formation on the weekly technical charts, which is bullish in character for the near term. Investors might therefore purchase this stock at a stop loss of Rs. 285-290 with a target price of Rs. 350.”

The CEO of GCL, Ravi Singhal, stated, “Hindustan Zinc appears frail from here. Nearly all of the company’s cash reserves have been distributed following this payout. Debt may rise if the commodities cycle swings around. On the other hand, because the majority of the company’s cash has been spent, the government will also attempt to sell its stake.

Singhal reduced his pricing objective to Rs 280.

Hindustan Zinc is bearish on the daily charts, with significant resistance at Rs 324, according to AR Ramachandran of Tips2trades. In the short term, goals of Rs 304-296 might be reached with a daily closing below the support of Rs 318.

An integrated producer of zinc, lead, and silver, Hindustan Zinc is owned by Vedanta to the tune of 64.92 percent. Long a cash cow for Anil Agarwal’s Vedanta Group, the Rajasthan-based business squeezes out hefty profits.

Due to valuation concerns, the Centre had already rejected Vedanta’s bid to sell its global zinc business to Hindustan Zinc for $2.98 billion.

While everything was going on, rises in state-owned lenders, financials, and pharmaceutical firms drove up Indian equity indexes during afternoon trades.

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