Vedanta Group subsidiary Hindustan Zinc (Hindustan Zinc) has declared its fourth interim dividend for the current fiscal year 2022-23. Hindustan Zinc disclosed in a 21 March stock market statement that the company’s board has authorized a Rs 26 per share dividend. The record date for this dividend is March 29. It will distribute Rs 10985.83 crore in interim dividends to its shareholders.
Presently, its shares are trading at 6.7 times the enterprise value relative to the expected EBITDA for one year (6.7x 1-year future EV/EBITDA), although during fiscal year 2016 it has averaged 6.5 times, or vice versa. The price of Hindustan zinc share is high. Citi has assigned a cell rating and a target price of Rs 260, which is 20% below the stock’s current price.
Obtaining Rs 75,500 in dividends in FY2023
Hindustan zinc shares fell around 29% in the current fiscal year 2022-23, although interim dividend (Hindustan Zinc Dividend) remained stable.
This has been partially compensated for by) The firm paid Rs 21 per share for the first time in the current fiscal year on 20 July 2022, followed by Rs 15.50 per share on 11 November 2022, Rs 13 per share on 16 January 2023, and Rs 26 per share on 16 March 2023. This time, the corporation has declared a dividend of Rs 1,300 per share Yi 26 on Rs 2 par value shares. After crediting, stockholders will get Rs 75.50 in dividends throughout the course of the fiscal year.
How is the financial health of the company?
For the quarter ending in December 2022, Hindustan Zinc’s consolidated net income decreased by 20.17 percent to Rs 2,156 crore, while operating revenue decreased by 2.71 percent to Rs 7,628 crore. Lately, the firm remained in frequent debate until it abandoned plans to buy two companies from Vedanta Group for $300 million in cash. The government may delay its intention to sell its part in the company. The government is Hindustan Zinc’s largest minority stakeholder. It holds a 29.54 percent interest in Hindustan Zinc, compared to Vedanta’s 64.90 percent.