HINDZINC - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.0
| 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 |
📉 Chart Patterns & Trend: HINDZINC is trading above both its 50 DMA (₹577) and 200 DMA (₹542), confirming a bullish structure. Current price (₹596) is well supported, suggesting continuation toward resistance at ₹620–₹630.
📊 Momentum Indicators: RSI at 55.1 indicates healthy momentum, not overbought. MACD at 14.4 confirms bullish crossover. Bollinger Bands show price moving toward the upper band, signaling continued strength.
📈 Volume Trends: Current volume (71.5 lakh) is below average weekly volume (112.4 lakh), reflecting reduced participation but still steady accumulation interest.
🎯 Entry Zone: ₹585 – ₹595 (near support, favorable risk-reward).
🚪 Exit Zone: ₹620 – ₹630 (near short-term resistance; profit-taking zone).
🔎 Status: The stock is trending upward with bullish signals. Sustained breakout requires price action above ₹630–₹640.
Positive
- Strong ROE (76.6%) and ROCE (69.3%) highlight exceptional efficiency.
- Quarterly PAT growth (+67.9%) supports earnings momentum.
- EPS of ₹32.4 provides valuation strength.
- Trading above both 50 & 200 DMA confirms bullish trend.
Limitation
- PEG ratio of 1.99 suggests moderate overvaluation relative to growth.
- Dividend yield of 1.85% is modest.
- P/E of 18.4 is lower than industry average (58.6), reflecting sector premium but limiting upside valuation.
- Volume participation lower than average, reducing breakout conviction.
Company Negative News
- Moderate debt-to-equity ratio (0.39) compared to peers.
- Volume weakness may limit short-term momentum.
Company Positive News
- Quarterly PAT improved from ₹3,860 Cr to ₹4,997 Cr.
- FII (+0.85%) and DII (+0.16%) holdings increased, showing investor confidence.
Industry
- Metals sector trading at industry PE of 58.6, much higher than HINDZINC’s P/E (18.4), suggesting relative undervaluation.
- Sector outlook remains strong with global demand for zinc and non-ferrous metals.
Conclusion
✅ HINDZINC is technically strong, trading above key moving averages with bullish momentum. Fundamentals remain robust with strong ROE, ROCE, and profit growth. Short-term traders may consider entry near ₹585–₹595 with exits around ₹620–₹630. Long-term investors can hold, as valuations remain attractive compared to industry peers.
Would you like me to extend this into a peer benchmarking overlay with Hindalco, Vedanta, and NMDC to highlight HINDZINC’s relative strength in the metals sector?