HINDZINC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.3
| Stock Code | HINDZINC | Market Cap | 2,51,808 Cr. | Current Price | 596 ₹ | High / Low | 733 ₹ |
| Stock P/E | 18.4 | Book Value | 53.2 ₹ | Dividend Yield | 1.85 % | ROCE | 69.3 % |
| ROE | 76.6 % | Face Value | 2.00 ₹ | DMA 50 | 577 ₹ | DMA 200 | 542 ₹ |
| Chg in FII Hold | 0.85 % | Chg in DII Hold | 0.16 % | PAT Qtr | 4,997 Cr. | PAT Prev Qtr | 3,860 Cr. |
| RSI | 55.1 | MACD | 14.4 | Volume | 71,48,401 | Avg Vol 1Wk | 1,12,47,772 |
| Low price | 398 ₹ | High price | 733 ₹ | PEG Ratio | 1.99 | Debt to equity | 0.39 |
| 52w Index | 59.1 % | Qtr Profit Var | 67.9 % | EPS | 32.4 ₹ | Industry PE | 58.6 |
Positive
- Exceptional ROE (76.6%) and ROCE (69.3%) highlight outstanding efficiency.
- EPS of ₹32.4 reflects strong profitability.
- Dividend yield of 1.85% provides steady income.
- Debt-to-equity ratio of 0.39 remains manageable.
- Quarterly PAT growth of 67.9% shows robust earnings momentum.
- FII (+0.85%) and DII (+0.16%) holdings increased, signaling institutional confidence.
Limitation
- PEG ratio of 1.99 indicates slightly stretched valuation relative to growth.
- Current price (₹596) below 52-week high (₹733), showing resistance at upper levels.
- RSI at 55.1 suggests neutral momentum, not strongly bullish.
- Average trading volume (1.12 Cr.) higher than current volume (71.5 Lakh), showing reduced participation.
Company Negative News
- Valuation concerns with PEG ratio nearing 2.0.
- Reduced trading activity compared to weekly average.
Company Positive News
- Quarterly PAT surged to ₹4,997 Cr. from ₹3,860 Cr.
- Institutional holdings increased, reflecting investor confidence.
- MACD positive (14.4) supports bullish technical sentiment.
Industry
- Metals and mining sector trading at industry P/E of 58.6, higher than Hindustan Zinc’s 18.4, suggesting undervaluation.
- Sector demand driven by zinc consumption in infrastructure, galvanization, and industrial applications.
- Hindustan Zinc’s competitive advantage lies in being India’s largest zinc producer with integrated operations.
Conclusion
Hindustan Zinc demonstrates exceptional efficiency, strong profitability, and institutional support. Valuations remain attractive compared to industry peers, though momentum is neutral.
Entry Zone: Attractive accumulation range between ₹580–₹600.
Long-Term Guidance: Suitable for investors seeking exposure to metals with strong fundamentals. Expect steady returns with potential upside tied to global zinc demand and sector expansion.
Would you like me to also prepare a peer benchmarking overlay HTML (comparing Hindustan Zinc with Vedanta, NMDC, and Hindalco) so you can see relative valuation and efficiency metrics side by side?