Shares of Hindustan Zinc Ltd slumped over 5 percent, ahead of its record date for the payment of its second interim dividend. The stock traded ex-dividend in Wednesday’s trading session.
The ex-dividend date for a stock is one business day prior to the record date, meaning an investor who buys the stock on its ex-dividend date or later will not be eligible to receive the declared dividend.
On November 16, the board of the Vedanta Group company approved second interim dividend of ₹15.50 per equity share i.e., 775 percent on face value of ₹2 per share for the FY 2022- 23 amounting to ₹6,549.24 crore.
“The record date for the purpose of payment of second interim dividend, as already communicated is Thursday, November 24, 2022. The second interim dividend will be paid within stipulated timelines as prescribed under law,” said the company in an exchange filing.
On the technical front, analysts said that the stock is witnessing profit booking, but the overall trend is positive.
Further, they said that one can keep ‘buy on dip’ strategy. Any dip towards ₹295 is a buying opportunity, and ₹313 - 318 is resistance level. A correction is possible till ₹295-292 levels.
The calendar year gain for the stock so far is more than 7 percent, whereas the metal index is up 16 percent in 2022.
“We don’t have any recommendation on this counter; however, trend is up, and dips towards 295 can be bought with immediate resistance of 313 - 318 into consideration,” said Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One.
The company’s weekly average delivery volume is 47.66 percent, and the stock price has underperformed its sector by 11.39 percent in the past year.
The company’s promoter pledges are high with a percentage of 86.05%.
According to a Mintgenie poll, 15 analysts have a ‘hold’ call on the stock.