Hindustan Zinc surged more than 6 percent to Rs 319 on December 4 after the company said that its board on December 6 would consider paying out a second interim dividend for current financial year.
The stock was seeing brisk volumes. By afternoon, around 1.9 million shares had exchanged hands at BSE and NSE against one-week average of 0.4 million.
In an exchange filing, Vedanta-owned Hindustan Zinc said the record date to determine eligibility for the second interim dividend would be December 14, 2023.
A record date means shareholders who own the shares on that date will be eligible for the payout.
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In the September-ended quarter, Hindustan Zinc's net profit dropped 35.5 percent year-on-year (YoY), while revenue surged 18.5 percent.
The management, however, maintained a positive stance on expected growth in zinc demand in India due to elevated infrastructure, construction activities, and increasing steel output.
It projected a capex guidance of $170-200 million for FY24 and maintained capex at $375 million for the year.
ALSO READ: Govt may offload 3.5% via initial OFS in Hindustan Zinc
Analysts at Systematix Institutional Equities shared a “hold” rating on the counter with a target price of Rs 287.
"We have factored in mined metal production at 1.06 metric tonne (+2.7 percent YoY) and silver production at 744 tonne (+4.1 percent YoY) for FY24. We revise our FY24E/FY25E EBITDA downward by 25 percent/17 percent to account for lower metal prices partially offset by lower cost of production," the brokerage firm added in a post-result review note.
At 1.24 pm, the stock was trading at Rs 355, up 2.41 percent from the previous close.
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