Hindustan Zinc shares halt 7-day winning run, slip 5% today after dividend announcement

Shares of Hindustan Zinc Ltd fell up to 5.35 per cent in Monday's trade, pausing their seven-day upward march. The stock hit a day low of Rs 322.30 over its previous close of Rs 340.50. At today's low price, the scrip traded 15.85 per cent lower from its 52-week high of Rs 383, hit on January 19 this year. Although, it has gained 23.72 per cent from its one-year low price of Rs 260.50, a level seen on July 27, 2022.

The downward move in the share price came after the company declared an interim dividend of Rs 7. In continuation to our letter dated July 5, 2023 and pursuant to Regulation 30 of Listing Regulations, we wish to inform you that the Board of Directors of the company through resolution passed by circulation on Saturday, July 8, 2023 have approved interim dividend of Rs 7 per equity share i.e. 350 per cent on face value of Rs 2 per share for the financial year 2023-24 amounting to Rs 2,957.72 crore," Hindustan Zinc stated in an exchange filing.

The company has fixed record date for the same on July 15, 2023. The interim dividend will be paid within stipulated timelines as prescribed under law, it added.

Around 1.10 lakh shares changed hands today on BSE, which was lower than the two-week average volume of 1.31 lakh shares. Turnover on the counter came at Rs 3.59 crore, commanding a market capitalisation (m-cap) of Rs 1,38,548.21 crore. There were 56,057 sell orders against buy order of 45,983 shares.

The counter's 14-day relative strength index (RSI) came at 83.50. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-earnings (P/E) ratio of 13.68. It has a price-to-book (P/B) value of 11.12.

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The scrip has a one-year beta of 0.49, indicating low volatility.

Hindustan Zinc is an integrated zinc producer. It is a subsidiary of Vedanta which owns 64.90 per cent stake in the company while the government retains a 29.50 per cent stake. The company'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.

Meanwhile, Indian equity benchmarks traded higher in today's early deals, led by gains in energy, state-owned banks and metal stocks.

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