Hindustan Zinc stock soars 11% to new high as board approves 500% interim dividend

livemint.com:

Hindustan Zinc rallied 11 percent to hit a new high of ₹506.30 apiece after the company's board approved an interim dividend of ₹10 per equity share of a face value of ₹2 each or 500 percent for FY25. This will result in a total outgo of ₹4,225.32 crore. Hindustan Zinc's recent ₹10 dividend announcement marks a return to double-digit dividends, following payouts of ₹7 and ₹6 per share in July and December last year, respectively.

Overall in FY24, the company had declared a total dividend of ₹75.5 per share, with a total outgo of ₹31,901 crore. Post today's surge, the stock has now jumped 77.6 percent from its 52-week low of ₹285.00, hit on March 15, 2024. In the last 1 year, the stock has risen 46 percent.

The stock advanced 58 percent in 2024 YTD, giving positive returns in just 2 of the 5 months so far. It has jumped 15.6 percent in May so far after a 46 percent rally in April. Meanwhile, it fell 4.6 percent in March, 3.4 percent in February and 0.2 percent in January.

The dividend comes as Vedanta and its parent company Vedanta Resources (VRL) seek to raise funds to reduce debt. Vedanta Ltd., the promoter holding a 64.92 percent stake in Hindustan Zinc, will receive a total payout of ₹2,743 crore. The government, which holds a 29.5 percent stake in the company, will receive a payout of ₹1,247 crore.

For the March quarter, Hindustan Zinc had posted a 21 percent year-on-year fall in its net profit at ₹2,042 crore, impacted by lower zinc and lead prices. It had recorded a profit of ₹2,589 in the year-ago period. Meanwhile, its revenue fell 11 percent YoY to ₹7,550 crore in Q4FY24 versus ₹8,509 crore during the same year-ago period.