Hindustan Zinc to consider dividend for FY25; stock react ahead of board meeting

Hindustan Zinc Ltd is set to hold a board meeting today to decide on the company's first interim dividend for the financial year 2025-26. The stock with rose over one percent ahead of the meeting. The record date for the dividend has been set for June 17, 2025. The company reported decent performance in its financial results for the March quarter. Hindustan Zinc last paid a dividend in August 2024, declaring an interim dividend of ₹19 per share.

The company's stock has seen a positive trajectory, with shares rising more than 1.25% to ₹540.55 on Wednesday, with a total market capitalization at ₹2.3 lakh crore. This marks a significant recovery from its 52-week low of ₹378.65 in March 2025, though it remains down 33% from its high of ₹717.10 in July 2024.

In its latest financial results, Hindustan Zinc reported a 20% increase in revenue year-on-year, reaching ₹9,087 crore. The company also saw a remarkable 47% growth in net profit, amounting to ₹3,003 crore. The EBITDA for the quarter stood at ₹4,820 crore, reflecting a 32% year-on-year growth, with the EBITDA margin expanding by nearly 500 basis points to 53%.

The shareholding pattern of Hindustan Zinc as of the March quarter shows that Vedanta, the promoter, holds a 63.42% stake in the company. Additionally, the Government of India owns a 27.92% stake, while retail shareholders hold a 2.48% stake. Vedanta Ltd received a substantial payout of ₹5,091 crore from Hindustan Zinc last year. This distribution highlights the significant returns stakeholders have enjoyed due to the company's profitability.

Brokerages have varied views on Hindustan Zinc's stock. JM Financial maintains a 'buy' rating with a target price of ₹530. In contrast, Nuvama Institutional Equities recommends reducing the stock with a target of ₹403, while Kotak Institutional Equities has a 'sell' rating with a target of ₹350. These differing opinions illustrate the diverse perspectives on the stock's potential.

Dolat Capital initiated a 'BUY' rating on Hindustan Zinc with a target price of ₹564, highlighting its position as the world’s largest integrated zinc producer and a top silver producer globally. The company aims to expand its base metal production capacity to 2,000 ktpa and increase silver production capacity by FY30, while lowering zinc production costs to enhance profitability. Such strategic plans indicate a strong future outlook for the company.