Vedanta Group-backed leading zinc stock, Hindustan Zinc which has a strong return on equity of 122.28%, will be in focus this week. This large-cap Zinc stock will turn ex-dividend on June 17 for its first interim dividend payout for FY26. Accordingly, the stock movement will be eyed on Monday, June 16. Hindustan Zinc has outperformed its parent, Vedanta, significantly with a 16% upside year-to-date, making it the top-performing metal stock of 2025 so far.
Hindustan Zinc Ltd Share Price:
HZL's stock price closed at Rs 514.40 apiece on June 13 last week, down by 0.5% with a market cap of Rs 2,17,350.41 crore on BSE. As of June 13, the stock has a return on equity of 122.28%, while its price-to-equity ratio is at 23.25x.
In a month, HZL stock zoomed by 16.30%, while its year-to-date performance is with a 15.8% upside, which is better than Vedanta's gains of 3% on BSE.
Hindustan Zinc Ltd Interim Dividend:
Hindustan Zinc will turn ex-dividend on Wednesday, June 11, 2025, at 12:56 pm, have approved the first Interim Dividend of Rs. 10 per equity share i.e. 500% on the face value of Rs. 2/- per equity share for the Financial Year 2025-26. This is also the record date to determine eligible shareholders.
Just like its parent Vedanta, Hindustan Zinc is among top dividend paying metal stock and high dividend yield company. In the past 12 months, Hindustan Zinc has delivered about Rs 19 dividend per share. Currently, it has a dividend yield of 3.69%.
Tax Deducted At Sources (TDS) On Hindustan Zinc Dividend:
In its regulatory filing, HZL said, "We wish to inform our shareholders that the Company has created a dedicated Shareholders Portal on its website www.hzlindia.com under the 'Investors' tab," adding, "Shareholders who wish to avail lower TDS deduction or no TDS deduction on the Interim Dividend declared today, i.e., June 11, 2025, for the Financial Year 2025-26, are requested to upload the requisite documents on the portal for consideration latest by Monday, June 16, 2025, 5:00 PM on the portal itself."
It needs to be noted that the dividend payout is subject to tax rates. A tax deducted at source (TDS) is applicable on the dividends.
However, no TDS will be deducted on payment of dividends to the resident individual/HUF shareholder if the total dividend during the financial year ('FY'), does not exceed Rs 5,000.
However, a 10% TDS will be levied if the dividend payout is more than Rs 5000 in case of a valid Permanent Account Number (PAN) card. But if the PAN card is not valid with the depository participant, then the TDS will be 20% for resident shareholders other than Resident Individuals/HUFs.
Hindustan Zinc Deploys Cutting-Edge Tech:
Last month, Hindustan Zinc reaffirmed its innovation leadership by deploying a host of emerging technologies across its mining and smelting operations. The company is the first in India's metals sector to implement tele-remote operations and smoke-hours drilling-boosting underground productivity and adding 22,000 tonnes of annual output.
In collaboration with emerging-tech startups, Hindustan Zinc has introduced AI-driven predictive maintenance, robotic automation in smelting, and a smart surveillance system-significantly reducing downtime and enhancing safety. These tech-enabled transformations are helping the company achieve operational excellence while minimizing environmental impact, as per the statement.
BUY/SELL Hindustan Zinc Shares:
As per the Trendlyne data, the consensus recommendation from 13 analysts for Hindustan Zinc Ltd. is HOLD. From the total, only 4 analysts have recommended 'STRONG BUY' on Hindustan Zinc. EPS is expected to grow by 10.7% in FY26. The average target price is at Rs 447.31 apiece here, suggesting nearly 13% potential pullback in the stock ahead.
Over the past few weeks, Hindustan Zinc has surpassed majority of its brokerages target prices. On June 6, Prabhudas Lilladher Technical Research recommended to book profit on Hindustan Zinc as the stock surpassed Rs 505 mark, however, maintained the target price of Rs 550.
Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.
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