High Dividend-Paying Stock in Focus: Hindustan Zinc Plans to Double Production by FY30

Date मार्च 3, 2025

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In a significant development, Hindustan Zinc Ltd, a leading player in the mining and production of zinc, lead, silver, and cadmium, has announced plans to double its metal production capacity by FY30. This ambitious goal has put the company’s stock in the spotlight, especially for investors seeking high dividend-paying stocks with strong growth potential.

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Stock Performance and Market Reaction

On Monday, Hindustan Zinc Ltd shares experienced a slight dip, trading down by 1.7% at an intraday high of ₹397.70 per share, compared to its previous closing price of ₹390.75. Despite the minor decline, the stock remains a key player in the metals sector, boasting a market capitalization of ₹1,60,604.38 crores.

What’s Driving the Buzz?

The company’s Chairperson, Priya Agarwal Hebbar, revealed in a letter to shareholders that Hindustan Zinc Ltd aims to double its metal production to 2 million tonnes per annum (MTPA) by 2030. This expansion aligns with India’s growing steel capacity and the government’s focus on infrastructure development.

Currently, the company operates at a production capacity of 1.1 MTPA. Over the past five years, it has achieved a 4% compound annual growth rate (CAGR) in metal production and a 5% CAGR in silver production. Additionally, the company is venturing into critical minerals and has been named the preferred bidder for several mining blocks across India.

Why This Matters for Investors

Strong Dividend Yield: Hindustan Zinc offers an attractive dividend yield of 3.33%, making it a reliable choice for income-focused investors.
Robust Financials: The company has maintained impressive financial metrics, including an average Return on Equity (ROE) of 33.23% and Return on Capital Employed (ROCE) of 30.86% over the last three years.
Growth Potential: With plans to double production and expand into critical minerals, the company is well-positioned to capitalize on India’s infrastructure boom and global demand for metals.

About Hindustan Zinc Ltd

Hindustan Zinc Ltd, a subsidiary of Vedanta Limited, is one of the world’s largest producers of zinc, lead, silver, and cadmium. The company plays a pivotal role in industries such as steel galvanization and infrastructure development. Its operations span mining, refining, and metal production, making it a key contributor to India’s industrial growth.

Financial Highlights

Revenue Growth: In Q3 FY24-25, the company’s revenue increased by 16.12%, rising from ₹7,606 crore to ₹8,832 crore.
Net Profit Surge: Net profit saw a significant jump, growing from ₹2,028 crore to ₹2,678 crore during the same period.

Key Takeaways for Investors

Hindustan Zinc Ltd’s ambitious expansion plans, coupled with its strong dividend payouts and robust financial performance, make it a compelling stock to watch. As the company gears up to double its production capacity, it is poised to benefit from India’s infrastructure push and the global demand for metals.

For investors seeking a blend of growth potential and steady income, Hindustan Zinc Ltd stands out as a promising option in the metals and mining sector. Stay tuned for more updates on this high-dividend stock as it charts its path toward doubling production by FY30!

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High Dividend-Paying Stock in Focus: Hindustan Zinc Plans to Double Production by FY30