Vedanta owned listed company Hindustan Zinc Limited is one of the Jewel. The Indian government also own the
part of the company and time to time uses its cash to generate cash for the
government. Recently Hindustan Zinc limited announced 1200% special dividend
post government put pressure to announce the same. It impacted its other
earning segment and overall impacted the result.
With the Indian economy on the
path of recovery, I believe that commodity based companies will do extremely
well. HZL still sitting on multi billion $ cash and its debt free company.
Vedanta group is trying hard to buy government share to fully own HZL which
will impact indebted Vedanta Group corporate rating by rating agencies.
It is advisable to play the
strategic move with long term delivery based buying during dip and hold the
equity with a horizon of 3 to 5years. I am sure that in any scenario, high
yield HZL will give strong return.
Play out with its cash position,
handsome dividend, Vedanta eagerness to buy government share and economy
recovery.
Disclaimer - Take the advice from
your financial advisor before investing
