HINDZINC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | HINDZINC | Market Cap | 2,66,913 Cr. | Current Price | 632 ₹ | High / Low | 733 ₹ |
| Stock P/E | 19.5 | Book Value | 53.2 ₹ | Dividend Yield | 1.74 % | ROCE | 69.3 % |
| ROE | 76.6 % | Face Value | 2.00 ₹ | DMA 50 | 604 ₹ | DMA 200 | 555 ₹ |
| Chg in FII Hold | 0.85 % | Chg in DII Hold | 0.16 % | PAT Qtr | 4,997 Cr. | PAT Prev Qtr | 3,860 Cr. |
| RSI | 55.9 | MACD | 14.1 | Volume | 42,14,751 | Avg Vol 1Wk | 46,40,431 |
| Low price | 413 ₹ | High price | 733 ₹ | PEG Ratio | 2.11 | Debt to equity | 0.39 |
| 52w Index | 68.4 % | Qtr Profit Var | 67.9 % | EPS | 32.4 ₹ | Industry PE | 57.4 |
📊 Core Financials
- Revenue Growth: Quarterly PAT rose to ₹4,997 Cr from ₹3,860 Cr, showing strong 67.9% growth.
- Profit Margins: ROE at 76.6% and ROCE at 69.3% highlight exceptional profitability.
- Debt Ratios: Debt-to-equity of 0.39 reflects moderate leverage.
- Cash Flows: Dividend yield of 1.74% provides modest shareholder returns.
- Return Metrics: EPS of ₹32.4 demonstrates solid earnings power.
💹 Valuation Indicators
- P/E Ratio: 19.5 vs industry PE of 57.4, suggesting undervaluation.
- P/B Ratio: Price ₹632 vs book value ₹53.2, trading at ~11.9x book.
- PEG Ratio: 2.11, indicating growth is priced slightly expensively.
- Intrinsic Value: Current price above DMA 50 (₹604) and DMA 200 (₹555), showing strong momentum.
🏢 Business Model & Competitive Advantage
Hindustan Zinc (HINDZINC) operates in mining and smelting of zinc, lead, and silver. Its competitive advantage lies in being India’s largest zinc producer, strong cost efficiency, and global demand for non-ferrous metals. Exceptional ROE and ROCE reinforce operational strength.
📈 Entry Zone & Long-Term Guidance
Entry zone looks attractive around ₹600–₹640 given RSI (55.9) and MACD (14.1) showing bullish momentum. Long-term holding is recommended due to strong fundamentals, industry leadership, and undervaluation relative to peers.
✅ Positive
- Strong quarterly PAT growth (67.9%).
- Exceptional ROE (76.6%) and ROCE (69.3%).
- P/E ratio (19.5) significantly below industry average (57.4), suggesting undervaluation.
⚠️ Limitation
- P/B ratio (~11.9x) indicates premium valuation relative to book value.
- Dividend yield of 1.74% is modest compared to profitability levels.
📉 Company Negative News
- Moderate debt-to-equity ratio (0.39) compared to peers.
- Valuation multiples remain high relative to book value.
📈 Company Positive News
- FII holding increased (+0.85%) and DII holding increased (+0.16%), showing institutional confidence.
- Quarterly PAT surged from ₹3,860 Cr to ₹4,997 Cr.
🏭 Industry
The metals and mining industry is expanding with demand from infrastructure, renewable energy, and industrial applications. Industry PE at 57.4 is much higher than HINDZINC’s 19.5, suggesting undervaluation. Commodity price volatility remains a key risk.
🔎 Conclusion
HINDZINC demonstrates exceptional profitability, strong growth, and undervaluation relative to peers. Entry around ₹600–₹640 is attractive for investors. Long-term holding is recommended for industry leadership and growth potential, though caution is advised due to commodity price cycles and premium book value multiples.
Would you like me to also compare Hindustan Zinc with peers like Vedanta, NALCO, and Hindalco to evaluate relative strengths in the metals and mining sector?