Vedanta arm Hindustan Zinc rallies 14% in three sessions on dividend hopes

Shares of Hindustan Zinc, a subsidiary of Vedanta, continued their gaining streak for the third straight session on Monday amid hopes that its board would consider an interim dividend payout in a meeting this week. The meeting of the board of directors of Hindustan Zinc is scheduled to be held on June 11, 2025.

“The board of directors of the company on Wednesday, June 11, 2025, will consider and approve the first interim dividend on equity shares, if any, for the financial year 2025-26,” Hindustan Zinc said in a regulatory filing on July 6.

Riding high on dividend payment hopes, Hindustan Zinc shares have surged nearly 14% in three sessions. Today, the stock has risen as much as 6% to ₹532.50 on the BSE, after ending 2.05% and 5.24% on June 6 and June 5, respectively.

Today, shares of Hindustan Zinc kicked off trading at ₹511, up 1.75% against Friday’s closing level of ₹502.20 on the BSE. The market capitalisation rose to ₹2.2 lakh crore as more than 6 lakh shares changed hands over the counter on the BSE compared to two-week average volume of 3.35 lakh stocks.  

Hindustan Zinc share price touched its 52-week high of ₹717.10 on July 8, 2024, and a 52-week low of ₹378.65 on March 3, 2024. The metal and mining stock has delivered a negative return of 22% in the last one year; while it gained 3.5% in six months. In the last one month, the counter has risen over 28%.

In the past 12 months, Hindustan Zinc has declared an equity dividend amounting to ₹19 per share, while its dividend yield stands at 3.63%, as per Trendlyne data, a stock market analytics platform.

For the March quarter of FY25, Hindustan Zinc reported a 47.3% year-on-year (YoY) rise in consolidated net profit at ₹3,003 crore, driven by higher income. The world's third biggest zinc producer clocked the “highest-ever” fourth quarter revenue of ₹9,087 crores up 20% YoY, with an EBITDA margin of 53%, up 500 bps YoY.

For the full financial year 2024-25, the company delivered 18% growth in revenue to ₹34,083 crore and recorded full year profit after tax (PAT) of ₹10,353 crore, up 33% YoY, driven by the 4-year lowest cost of production (COP) at $1,052 per metric tonnes (MT). It also registered a robust FY25 EBITDA of ₹17,465 crore, up 28% YoY, while margin improved by 400 bps YoY to 51%.

The company holds 77% market share in India’s primary zinc market and has registered ever-highest domestic market sales of 603 KT. During the year, the company also registered its highest ever value-added products share of 22%, it said in a release. 

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