HINDZINC - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.9
| Stock Code | HINDZINC | Market Cap | 2,13,924 Cr. | Current Price | 506 ₹ | High / Low | 733 ₹ |
| Stock P/E | 18.3 | Book Value | 32.2 ₹ | Dividend Yield | 5.73 % | ROCE | 60.7 % |
| ROE | 72.4 % | Face Value | 2.00 ₹ | DMA 50 | 588 ₹ | 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 | 30.5 | MACD | -21.4 | Volume | 1,10,56,538 | Avg Vol 1Wk | 75,93,934 |
| Low price | 385 ₹ | High price | 733 ₹ | PEG Ratio | 7.16 | Debt to equity | 0.82 |
| 52w Index | 34.8 % | Qtr Profit Var | 45.8 % | EPS | 27.7 ₹ | Industry PE | 47.8 |
📊 HINDZINC shows strong fundamentals but weak short-term technicals. The RSI at 30.5 indicates oversold conditions, suggesting a potential rebound. However, the MACD (-21.4) and price trading below both the 50 DMA (₹588) and 200 DMA (₹535) reflect bearish sentiment. Fundamentals are impressive with ROCE (60.7%) and ROE (72.4%), alongside strong quarterly PAT growth (+45.8%). Valuation is moderate with a P/E of 18.3 compared to industry P/E of 47.8, making it relatively undervalued. The high dividend yield (5.73%) adds investor appeal, though the PEG ratio (7.16) suggests limited growth relative to valuation.
💡 Optimal Entry Price: ₹495–₹510, near current levels and close to support.
📈 Exit Strategy (if already holding): Consider exiting around ₹580–₹600 (near 50 DMA resistance) unless momentum strengthens further.
✅ Positive
- Strong ROCE (60.7%) and ROE (72.4%) reflect excellent capital efficiency.
- Quarterly PAT growth from ₹2,632 Cr. to ₹3,860 Cr. (+45.8%).
- Dividend yield of 5.73% provides steady returns.
- FII holdings increased (+0.22%), showing foreign investor confidence.
⚠️ Limitation
- PEG ratio of 7.16 suggests limited growth potential.
- Debt-to-equity ratio of 0.82 is relatively high.
- Stock trading below both 50 DMA and 200 DMA reflects short-term weakness.
📉 Company Negative News
- DII holdings declined (-0.24%), showing reduced domestic institutional support.
- Weak technical indicators (RSI, MACD, DMA trend) limit short-term upside.
📈 Company Positive News
- Quarterly profit growth (+45.8%) reflects strong earnings momentum.
- Dividend yield of 5.73% adds investor appeal.
- FII holdings increased (+0.22%), showing foreign investor confidence.
🏭 Industry
- Metals and mining sector remains cyclical, influenced by global commodity prices.
- Industry P/E at 47.8 makes HINDZINC relatively undervalued (P/E 18.3).
🔎 Conclusion
HINDZINC is fundamentally strong with robust earnings and high dividend yield but faces short-term technical weakness. It may be suitable for swing trading if entered near ₹495–₹510, with a target around ₹580–₹600. Traders should monitor RSI recovery and volume trends before committing heavily.