Stock To Buy: Vedanta Group Co Inks MoU With Aesir, Shares Rally 128% In 3-Months

Vedanta Subsidiary Hindustan Zinc shares today gained 3.51% to 670.40 per share on BSE after it has signed an MoU (memorandum of understanding) with AEsir Technologies, Inc., a USbased company specializing in next-generation zinc battery technologies. Hindustan Zinc shares witnessed highly attractive rally of 128% in last 3-months only and soared 118% in last 1-year. In last 1-month, Hindustan Zinc shares slipped 9.63%. Its market cap stood at Rs 2,83,265.39 crore. It has a PE of 35.14 and ROE of 51.12.

Hindustan Zinc Signs MoU With US Based AEsir Technologies: The BSE filing said, "Under the MoU Hindustan Zinc will be the preferred supplier of zinc, a key raw material for AEsir Technologies' next-generation batteries. Zinc-based batteries provide a compelling alternative to other modern energy storage solutions, delivering higher power at lower costs with minimal maintenance and longer lifespans of upto 20 years. This makes them ideal for large-scale energy storage in industrial settings."

The MoU is in line with Hindustan Zinc's efforts towards exploring emerging applications of zinc in the clean energy transition.

Hindustan Zinc Gets Buy Call: Brokerage house Anand Rathi has recommended buy call to Hindustan Zinc shares with target price of Rs 890 per share. Hindustan Zinc share rallied from Rs 400 to Rs 800 recently and later it witnessed correction. Hindustan Zinc stock retraced exactly 50% of the rally and has turned up from there, added Anand Rathi. The analyst expects a further rally in silver price in the coming months and suggested 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. Brokerage firm Kotak Securities has recommended buy call to Hindustan Zinc Ltd shares with target price of Rs 666 per share and maintain stop loss at Rs 636 per share. Brokerage firm Investec recommended sell call to Vedanta Subsidiary Hindustan Zinc share with target price of Rs 345 per share from Rs 260 earlier.

Hindustan Zinc Share Performance: Hindustan Zinc share gained 110% year-to-date, soared 118% in last 1-year, jumped 154% in last 2-years, and offered return of 190% in last 5-years. The 52-week high price of Hindustan Zinc stock is Rs 807.00 apiece (as on 22/05/2024) and 52-week low price is Rs 285.00 apiece (as on 15/03/2024), respectively.

Hindustan Zinc Dividend: Hindustan Zinc on May 7, 2024 announced an 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 May 15, 2024 as the record date.

Hindustan Zinc Financials: The Vedanta subsidiary declared a dip of 21% year-on-year (YoY) in its Q4 net profit to Rs 2038 crore amid depressed zinc price all over the globe as demand has been rising at a lower rate than supply. Hindustan Zinc declared its consolidated net profit at Rs 2,583 crore. Sequentially, net profit rose marginally by 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. Hindustan Zinc's consolidated EBITDA announced at Rs 3637 crore for the quarter ended March 31, 2024, down 14% as against Rs 4208 crore announced in the similar quarter of last year. It said dip in revenue was caused 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 Bonus Share History: It announced 1 bonus issue since March 7, 2011. Its last bonus share was announced in the proportion of 1:1 with ex-bonus date fixed as March 7, 2011.

Hindustan Zinc Stock Split History: Hindustan Zinc split the face value 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 as on 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 Investec, Anand Rathi, and Kotak Securities. 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.