HINDZINC - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.0

🧾 Core Financial Analysis

📈 Profitability & Growth

PAT Qtr: ₹2,234 Cr vs ₹3,003 Cr — ↓4.73% QoQ, mild decline but still strong absolute profits.

EPS: ₹24.2 — solid, supports valuation.

ROE (73.0%) & ROCE (61.1%) — exceptionally high, indicating superior capital efficiency and profitability.

💰 Cash Flow & Debt

Debt-to-Equity: 0.82 — moderately high, but manageable given strong earnings.

Dividend Yield: 6.63% — very attractive, ideal for income-focused investors.

Cash Flow: Likely robust due to high margins and consistent profitability.

📊 Valuation Metrics

Metric Value Insight

P/E Ratio 18.0 Undervalued vs industry PE of 34.8

P/B Ratio ~13.9 Very high — reflects premium pricing over book value

PEG Ratio 6.30 Indicates growth is lagging behind valuation

Intrinsic Value Estimated ~₹460–₹490 Based on earnings and sector multiples

⚒️ Business Model & Competitive Advantage

Sector: Mining and metals — Hindustan Zinc is India’s largest zinc producer.

Operations: Zinc, lead, and silver production with integrated mining and smelting.

Moat: Resource ownership, cost leadership, and scale.

Growth Drivers: Infrastructure demand, renewable energy (silver), and global zinc supply constraints.

Risks: Commodity price volatility, environmental regulations, and debt levels.

📉 Technical & Sentiment Indicators

RSI: 45.4 — neutral zone, no strong momentum.

MACD: -3.91 — bearish signal, short-term weakness.

DMA 50 & 200: Price below both — downtrend, but nearing support.

Volume: Below average — suggests lack of strong buying interest.

💡 Investment Guidance

📌 Entry Zone (If Undervalued)

₹410–₹430 — attractive zone near support and below intrinsic value.

Accumulate gradually if price dips toward ₹400 with improving technicals.

📈 Long-Term Holding View

Buy for dividend and value investors.

Strong fundamentals, high ROE/ROCE, and excellent yield make it a compelling long-term hold.

Hold with a 3–5 year horizon for potential upside toward ₹500–₹550, especially if metal prices rebound.

Would you like a comparison with Vedanta or NMDC to explore how Hindustan Zinc fits within the mining and metals landscape?

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