⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
HINDZINC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | HINDZINC | Market Cap | 2,27,027 Cr. | Current Price | 537 ₹ | High / Low | 733 ₹ |
| Stock P/E | 19.4 | Book Value | 32.2 ₹ | Dividend Yield | 5.39 % | ROCE | 60.7 % |
| ROE | 72.4 % | Face Value | 2.00 ₹ | DMA 50 | 591 ₹ | DMA 200 | 535 ₹ |
| Chg in FII Hold | 0.22 % | Chg in DII Hold | -0.24 % | PAT Qtr | 3,860 Cr. | PAT Prev Qtr | 2,632 Cr. |
| RSI | 36.0 | MACD | -17.8 | Volume | 67,10,309 | Avg Vol 1Wk | 62,93,019 |
| Low price | 385 ₹ | High price | 733 ₹ | PEG Ratio | 7.60 | Debt to equity | 0.82 |
| 52w Index | 43.8 % | Qtr Profit Var | 45.8 % | EPS | 27.7 ₹ | Industry PE | 49.2 |
📊 Core Financials
- Quarterly PAT rose from ₹2,632 Cr. to ₹3,860 Cr. (~47% sequential growth, ~45.8% YoY growth).
- ROE: 72.4% → exceptionally strong profitability.
- ROCE: 60.7% → excellent capital efficiency.
- Debt-to-equity: 0.82 → moderate leverage, manageable but notable.
- Dividend Yield: 5.39% → very attractive shareholder returns.
💹 Valuation Indicators
- P/E Ratio: 19.4 vs Industry PE 49.2 → undervalued compared to peers.
- P/B Ratio: 16.7 (Current Price ₹537 / Book Value ₹32.2) → expensive relative to assets.
- PEG Ratio: 7.60 → valuation stretched compared to earnings growth.
- Intrinsic Value: Current price slightly above fair value, but strong dividend yield supports long-term holding.
🏢 Business Model & Competitive Advantage
- Hindustan Zinc is India’s largest zinc producer with integrated mining and smelting operations.
- Business model relies on demand from infrastructure, construction, and industrial sectors.
- Competitive advantage: Monopoly in zinc production, government backing, and strong global presence in metals market.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near ₹500–₹520 (close to support levels, RSI at 36.0 indicates oversold zone).
- Long-Term Holding: Suitable for investors seeking stable dividends and exposure to industrial metals, though valuations remain stretched.
✅ Positive
- Exceptional ROE (72.4%) and ROCE (60.7%).
- Strong dividend yield of 5.39% provides consistent returns.
- Quarterly PAT growth of ~45.8% YoY shows operational strength.
- FII holdings increased (+0.22%), showing foreign investor confidence.
⚠️ Limitation
- P/B ratio (16.7) indicates significant overvaluation relative to assets.
- PEG ratio (7.60) suggests valuation stretched relative to growth.
- DII holdings decreased (-0.24%), showing reduced domestic institutional support.
📉 Company Negative News
- Stock trading below 50 DMA (₹591), indicating weak short-term momentum.
- MACD at -17.8 signals bearish technical trend.
📈 Company Positive News
- Quarterly PAT surged to ₹3,860 Cr. from ₹2,632 Cr.
- Strong dividend payout supports long-term investors.
🌐 Industry
- Metals industry PE at 49.2, higher than Hindustan Zinc’s 19.4, showing relative undervaluation.
- Industry growth driven by infrastructure expansion, renewable energy, and industrial demand for zinc.
🔎 Conclusion
- Hindustan Zinc is fundamentally strong with exceptional profitability and attractive dividends.
- Valuations are stretched on P/B and PEG basis, but P/E suggests undervaluation compared to peers.
- Best strategy: Accumulate near ₹500–₹520 and hold long-term to benefit from industrial metals demand and strong dividend yield.