Vedanta announces Rs 9.5 dividend; Check out Market Guru Anil Singhvi's strategy to trade in this stock
After a lot of talks surrounding Vedanta Limited's dividend, the company has finally announced it at Rs 9.5 per share. Is it enough or a touch disappointing? Zee Business Managing Editor Anil Singhvi gives his take on it
After a lot of talks surrounding Vedanta Limited's dividend, the company has finally announced it at Rs 9.5 per share. Is it enough or a touch disappointing? Zee Business Managing Editor Anil Singhvi gives his take on it.
On a standalone basis, if one views it, the Rs 9.5 dividend is not bad for a Rs 100 share and a 10 per cent dividend is good, the Market Guru said. However, he said that the markets expected much more! Market participants feel that the company has money which could have been given to the shareholders.
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वेदांता ने ₹9.5/शेयर अंतरिम डिविडेंड को दी मंजूरी
अनिल सिंघवी- बाजार को वेदांता से और डिविडेंड की उम्मीद...कंपनी बाद में भी दे सकती है डिविडेंड
— Zee Business (@ZeeBusiness) October 26, 2020
Even at the time of delisting attempt made by the company, Zee Business has been saying that it would get dividend from Hindustan Zinc. This dividend will then go to the parent company Vedanta Plc.
The Managing Editor said that in his interview with promoter Anil Agarwal, leakage in the form of taxes by Hindustan Zinc, Vedanta and Vedanta Plc had been mentioned. Had the delisted process been successful, the companies could have been merged and the processes would have become easier, Singhvi added.
The dividends not being as per the expectations could be because the management either wants to give dividend later or save some money.
The company policy says that the entire dividend received from Hindustan Zinc would be distributed to Vedanta’s shareholders after cutting the taxes. Moreover, 30 per cent of its profits will also be distributed as dividend.
If one looks at the dividend payout of this year and previous year, the difference is as much as Rs 17 per share, Singhvi said. Possibility of dividend is still left in the company. Whether, it would come and by when, is a difficult guess, he further said.
Singhvi however, said that the investors should still be hopeful as the company has cash with it.
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On trading strategy regarding Vedanta, Singhvi said that the stock value of around Rs 95 is not bad. He said that Rs 160 – Rs 170 is an expensive buy while Rs 60-70 is a cheaper valuation of this stock. He said that he sees the is stock trading between Rs 90 and Rs 110.
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