HINDZINC - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.1

📊 Hindustan Zinc shows strong fundamentals and stable technicals. Entry near ₹460–₹465 is optimal. If already held, consider exiting near ₹540–₹560.

📈 Positive

• Exceptional ROCE (60.7%) and ROE (72.4%) — top-tier capital efficiency
• Dividend yield of 6.13% — attractive for income-focused investors
• Quarterly PAT growth: ₹2,632 Cr. vs ₹2,204 Cr. — up 11.6%
• Trading above DMA 50 (₹471) and DMA 200 (₹459) — confirms uptrend
• MACD 1.38 and RSI 46.2 — neutral to bullish setup

⚠️ Limitation

• PEG ratio 7.46 — suggests overvaluation relative to growth
• High debt-to-equity (0.82) — leverage risk
• Volume below weekly average — short-term interest may be cooling
• FII holding dipped by 0.04%

🚫 Company Negative News

• Concerns over global zinc demand amid slowing industrial activity
• Stock has corrected ~16% from 52-week high of ₹565

✅ Company Positive News

• Strong Q2 performance driven by higher zinc prices and cost control
• Dividend payout remains consistent, supporting investor sentiment
• Government stake and PSU status offer policy-driven stability

🏭 Industry

• Metals sector benefits from infrastructure and renewable energy demand
• HINDZINC trades at P/E 19.1 vs industry average of 31.3 — undervalued

🧾 Conclusion

• Hindustan Zinc is a technically stable and fundamentally strong swing candidate
• Best entry: ₹460–₹465 near DMA support and neutral RSI
• If already held, exit near ₹540–₹560 — resistance zone near 52-week high
• Watch for volume spike and RSI >50 for confirmation

I can also compare HINDZINC with other metal PSUs to identify stronger swing setups if you'd like.