From cash-rich to debt-laden: Will Hindustan Zinc’s dividend payout hurt it in the long term?

Hindustan Zinc (HZL) has announced a dividend of INR26 per share for the fourth time in FY23. This has left analysts worried. While Vedanta Resources stands to benefit, the move could cause a constraint on HZL’s future growth projects. Given that the metal shine has faded away, can HZL deliver on its topline after depleting its reserves?