The Zinc Thing!

protrade

Well-Known Member
#1
Back in the 90’s Ramesh Chauhan was facing a cash fueled onslaught from Coke and Pepsi, and sold out to Coke. And Coke retained ThumsUp and Limca - but shut down Gold Spot! Gold Spot had a fan following, and had carved a niche for itself, as the “Zing Thing” and sadly for us, Coke killed it!

This post is about how the “Zinc Thing” can potentially help us “Spot Gold” :)

Zinc is shaping up to be amongst the most important resources, because of its favorable battery chemistry relative to Lithium. It is cheaper, lighter and safer than Lithium.

Remember Eveready and other older batteries? Those are Zinc-Carbon batteries, Extremely cheap, but low charge and not rechargeable. And with high risk of leakage. And they lost out to Alkaline batteries - which also contain Zinc, had much higher charge, and were not rechargeable.

Modern Zinc-Air batteries however use spongy Zinc with air as medium - and can recharged as well. And because they don’t need the air packed with them, they are much lighter and have better power density than even Lithium ion!

Humble Zinc is making a huge comeback in batteries, and is going to be the premium material of the future.

Vedanta at its current levels simply doesn’t justify even its 65% ownership of Hindustan Zinc! And HZ is actually 15% higher than when the delisting bombed. Making Vedanta a steal!
 

protrade

Well-Known Member
#2
This weekend Vedanta Board is meeting to discuss dividend. They have received ₹11,000 cores as dividend from Hindustan Zinc itself - which is over 25% of market cap of the company.

How much of this will they pay out as dividend?

My guess is that it will be high - because Anil Agarwal needs to save himself - so he won’t worry about good part of the money going outside. Anyway delisting is not likely in a hurry, and it won’t happen cheap. So this ₹5500 Crores (for his 51% stake of Vedanta) is critical for him.

There is an outside chance Vedanta can give a bumper dividend this weekend, as high as 25% dividend yield on current price!!

Fasten your seatbelts and hang on!
 

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