Vedanta Dividend FY24: Anil Agarwal-led mining giant Vedanta Ltd is going to consider and approve an interim dividend in its meeting scheduled on Monday (May 22).
The shares of this multinational mining company were trading at Rs 283.15, up Rs 3.70 or 1.32%. The stock rose 1 percent in the last five days, while it fell 11 percent on a year-to-date basis. Vedanta shares went on to hit a 52-week high of Rs 340.75 on January 20, 2023, and 52-week low of Rs 206.1 on July 1, 2022.
Analysts largely estimate dividend for FY24 to be in Rs 45-80 per share range, citing parent Vedanta Resources’ debt obligations. They stayed mixed on the stock’s prospects, with a neutral-to-positive stance.
If the interim dividend is announced, then it would be the first interim dividend declared by Vedanta in the financial year 2023-24. The company has fixed May 30, 2023 (Tuesday) as the record date to determine the eligibility of shareholders for the same.
In a filing to BSE, Vedanta said a meeting of its board is “proposed to be scheduled on Monday, May 22, 2023, to consider and approve the first interim dividend on equity shares, if any, for the financial year 2023-24. Please note that the record date for the purpose of determining the entitlement of the equity shareholders for the said dividend, if declared, is being fixed as Tuesday, May 30, 2023,” it said.
Vedanta Dividend History
Vedanta has declared 39 dividends since July 23, 2001. In financial year 2022-23, Vedanta has declared an equity dividend amounting to Rs 101 per share.
According to analysts, the dividend for financial year 2023-24 will be in Rs 45-80 per share range due to parent Vedanta Resources’ debt obligations. However, analysts stayed mixed on the stock’s prospects, with a neutral-to-positive stance on the counter.
Domestic brokerage house Nuvama Institutional Equities expects Vedanta to continue pay high dividend in FY24E and FY25E and accordingly factored in dividend per share of Rs 45 in each for FY24E and FY25E. Vedanta is awaiting final approval from lenders to shift Rs 12,590 crore from general reserve to retained earnings, which will help in dividend payment, it said.
Net debt will rise to Rs 65,600 crore from Rs 55,300 crore in FY23 due to a higher dividend payout. A 16 percent dividend yield makes the stock attractive, Nuvama said, retaining a ‘Buy’ on the stock.
According to Trendlyne data, the company has an average target price of Rs 267 which represents a downside of 5 percent from the current levels.
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