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Motilal Oswal: Hindustan Zinc Q2 Review - High Interim Dividend A Positive

Motilal Oswal: Hindustan Zinc Q2 Review - High Interim Dividend A Positive

ZInc ingots (Photographer: SeongJoon Cho/Bloomberg)
ZInc ingots (Photographer: SeongJoon Cho/Bloomberg)

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Motilal Oswal Report

Hindustan Zinc Ltd.’s Q2 FY21 result was strong, as expected, led by higher silver volumes and prices.

Silver Ebit was the highest ever at Rs 10.8 billion (up 117% YoY; up 103% QoQ), contributing 46% to overall Ebit (the second highest ever).

Hindustan Zinc declared interim dividend of Rs 21.3 per share, amounting to Rs 90 billion (approximately 50% of net cash balance) and implying a dividend yield of approximately 10%.

Volume ramp-up, however, has been lagging guidance. Moreover, the pledging of shareholding by promoter Vedanta Ltd. is an additional overhang on the stock.

Click on the attachment to read the full report:

Motilal Oswal Hindustan Zinc Q2FY21 Result Update.pdf

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