500% Dividend, 1:5 Split: Buy Multibagger Vedanta Subsidiary Stock, TP Rs 890: Anand Rathi

Brokerage firm Anand Rathi is bullish on Vedanta Subsidiary Hindustan Zinc share and recommended buy call with target price of Rs 890 per share with stop to be maintained at Rs 590 per share. Current market price of Hindustan Zinc Ltd share on BSE is Rs 672.70 per share with intraday fall of 2.25%. If you buy Hindustan Zinc Ltd shares now at current market price ofRs 672.70 apiece, you can get potential return of 32.3%. Earlier this year, Hindustan Zinc shares traded ex-dividend for Rs 10/- per equity share i.e. 500% on the face value of Rs 2/- per equity share for FY 2024-25. Hindustan Zin split face value of its share once since March 7, 2011. Hindustan Zinc last split the face value of its shares from Rs 10 to Rs 2 in 2011. The share traded ex-split from March 7, 2011. Check details below:

Anand Rathi Recommends Buy To Hindustan Zinc share: Hindustan Zinc share price witnessed a surge from Rs 400 to Rs 800 recently and later it recorded correction. Hindustan Zinc stock retraced exactly 50% of the rally and has turned up from there, according to the analyst. The analyst anticipates a further surge in silver price in the coming months. Therefore, it recommends investors to go long in the Hindustan Zinc stock in the range of Rs 696 - Rs 684 with a stop loss of Rs 590 and a target price of Rs 840 - Rs 890 per share.

The major reason that pushed the Hindustan Zinc shares prices to new high was attributed to strong jump in silver prices. Hindustan Zinc recorded its highest ever silver production this year and emerged third largest silver producer globally.

Hindustan Zinc Dividend: The BSE filing dated May 7, 2024 stated, Hindustan Zinc gave nod to the Interim Dividend of Rs. 10/- per equity share i.e. 500% on face value of Rs. 2/- per equity share for the Financial Year 2024-25 amounting to Rs. 4,225.32 Crores. It fixed the record date as May 15, 2024.

Hindustan Zinc Q4: It announced a decline of 21% year-on-year (YoY) in its Q4 net profit to Rs 2038 crore as a result of depressed zinc price globally as demand has been rising at a lower rate than supply. It announced consolidated net profit at Rs 2,583 crore. Sequentially, net profit surged 0.5% from Rs 2028 crore in Q3. Its revenue from operations for the March 2024 quarter declared at Rs 7,285 crore, down 12% from Rs 8281 crore declared an year ago. Its consolidated EBITDA announced at Rs 3637 crore for the quarter ended March 31, 2024, down 14% as against Rs 4208 crore announced in the corresponding quarter of last year. Hindustan Zinc said that the fall in revenue was due to lower zinc and lead prices and lower lead volume partly offset by higher silver and zinc volumes, silver prices, and favourable exchange rates, as per the bse filing.

Hindustan Zinc Share Performance: The 52-week high price of Hindustan Zinc stock is quoting at Rs 807.00 per share (as on 22/05/2024) and 52-week low price is Rs 285.00 per share (as on 15/03/2024), respectively. Hindustan Zinc has a market capitalisation of Rs 2,84,363.97 crore. Hindustan Zinc declined over 2% in last 1-week, gained 123% in last 3-months, jumped 107% in last 6-months, rose 121% in last 1-year, and offered return of 140% in last 2-years. In last 5-years, Hindustan Zinc stock offered gain of 180%.

Hindustan Zinc Bonus Share History: The Vedanta's subsidiary declared 1 bonus issue since March 7, 2011. The last Bonus that Hindustan Zinc Ltd declared was in the ratio of 1:1 with ex-date set as March 7, 2011.

Hindustan Zinc Ltd About: Hindustan Zinc is India's largest and world's second largest integrated zinc producer. It is the 5th largest silver producers globally with an annual capacity of 800 MT. It is a subsidiary of Vedanta Limited which owns 64.9% stake in the Company while the Government of India retains a 29.5% stake. Hindustan Zinc's operations comprise lead-zinc mines, hydrometallurgical zinc smelters, lead smelters, pyro metallurgical lead-zinc smelter as well as sulphuric acid and captive power plants in northwest India, according to its official website.

Disclaimer:

The stock has been picked from the brokerage report of Anand Rathi. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.