Hindustan Zinc shares rose 5% in early trade on July 14, led by Vedanta, before the company declared an interim dividend of Rs 21 per share the next day.

Hindustan Zinc’s board of directors on July 13 approved an interim dividend of Rs 21 per share for the 2022-23 financial year, totalling Rs 8,873.17 crore, the company said in a regulatory filing.

The company said the registration date for the dividend payment is July 21, 2022, and it will be paid within the time required by law.

At 9.40 am, Hindustan zinc was trading at 287.80 rupees, up 5%.

The stock resisted losses in the broader metals and mining sector despite a drop in international zinc prices. Although zinc prices are down 36% from their April peak, they are still down about 10% this year.

Analysts have mixed views on the stock, with some saying international zinc prices drive the company’s valuation.
Management guided for flat production growth in FY23, which means mine production is likely to peak unless the significant expansion is achieved to achieve sustainable mine production. Motilal Oswal said management has guided to improve the cost structure, which is not suitable for the company.