Hindustan Zinc Dips Today, But Investors Still Enjoy Strong Monthly Surge

June 11,2025: Hindustan Zinc Ltd. (BSE: 500188), a subsidiary of Vedanta Group, has announced an interim dividend of ₹10 per equity share (500% of the ₹2 face value) for the financial year 2025-26. The decision was approved during a board meeting held on June 11, 2025. The record date for the dividend is yet to be announced.

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This announcement comes on the heels of a significant surge in the company’s stock price, which has risen 16.8% over the past four trading sessions, reaching a high of ₹546.95 on the Bombay Stock Exchange (BSE). The rally is attributed to a surge in silver prices, which recently hit new all-time highs in the Indian market, as well as positive investor sentiment ahead of the dividend declaration.

In its latest quarterly results for Q4 FY25, Hindustan Zinc reported a 47.4% year-on-year increase in consolidated net profit, amounting to ₹30.03 billion. This growth was driven by higher metal production and a 17.5% rise in domestic zinc prices, fueled by demand from India’s construction and manufacturing sectors. The company achieved a record mined metal production level of 310 kilotonnes during the quarter and maintains a dominant 75% share of the domestic zinc market.

Looking ahead, Hindustan Zinc plans to double its metal production to 2 million tonnes per annum by 2030, aiming to meet the growing demand for zinc driven by India’s infrastructure development and steel production. The company is also focusing on expanding its renewable energy capacity in partnership with Serentica Renewables, aiming to augment its renewable energy power to 530 MW.

Despite these positive developments, analysts caution that the company’s growth trajectory may be fully priced in, and future performance will depend on the timely completion of expansion projects and the ability to maintain metal prices.

Investors are advised to monitor the company’s upcoming announcements and market conditions closely to assess the sustainability of its growth and dividend payouts.