Hindustan Zinc Ltd - Stock Valuation and Financial Performance

BSE: 500188 | NSE: HINDZINC | Metal - Non Ferrous | Large Cap

Hindustan Zinc Share Price

292.70 -2.60 -0.88%
as on 19-Mar'24 13:20

DeciZen - make an informed investing decision on Hindustan Zinc

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Hindustan Zinc stock performance -

mw4me loader
P/E Ratio (SA):
14.97
Market Cap:
1,24,773.7 Cr.
52-wk low:
285
52-wk high:
344

Is Hindustan Zinc Ltd an attractive stock to invest in?

1. Is Hindustan Zinc Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Hindustan Zinc Ltd is a good quality company.

2. Is Hindustan Zinc Ltd undervalued or overvalued?

The key valuation ratios of Hindustan Zinc Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Hindustan Zinc Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Hindustan Zinc Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Hindustan Zinc:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Hindustan Zinc Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 20.3%21%19.6%21.5%24.6%21.7%17.5%19.9%25.4%34.3%-
Value Creation
Index
0.80.90.70.91.20.90.60.81.32.1-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 13,63614,78814,18117,27322,08221,11818,56122,62929,44034,09829,079
Sales YoY Gr.-8.5%-4.1%21.8%27.8%-4.4%-12.1%21.9%30.1%15.8%-
Adj EPS 16.62018.71921.318.315.818.322.724.819.7
YoY Gr.-20.4%-6.5%1.4%12.3%-14.1%-13.8%15.8%23.9%9.6%-
BVPS (₹) 88.6102.688.572.985.179.595.476.581.130.637.2
Adj Net
Profit
7,0298,4597,9108,0269,0077,7386,6737,7299,57310,4918,332
Cash Flow from Ops. 5,4715,5316,4517,5889,8008,7816,62110,56712,69115,133-
Debt/CF from Ops. 000100.30.10.70.20.8-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 10.7%9.1%22.5%15.8%
Adj EPS 4.6%3.1%16.3%9.6%
BVPS-11.1%-18.5%-31.5%-62.3%
Share Price 9.2% 1.1% 1.1% -6.3%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
20.22119.623.52722.318.121.328.844.458.2
Op. Profit
Mgn %
50.750.746.956.455.650.847.851.655.251.449.1
Net Profit
Mgn %
51.657.255.846.540.836.63634.232.530.828.7
Debt to
Equity
0000.300.100.20.10.9-
Working Cap
Days
1211381116264697861504688
Cash Conv.
Cycle
15120-40-4-3-10-14-13-6

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 58.10%

Sales growth is growing at healthy rate in last 3 years 22.47%

Net Profit is growing at healthy rate in last 3 years 16.29%

Sales growth is not so good in last 4 quarters at -13.19%

Latest Financials - Hindustan Zinc Ltd.

Standalone Consolidated
TTM EPS (₹) 19.7 19.7
TTM Sales (₹ Cr.) 29,079 29,078
BVPS (₹.) 37.2 37.1
Reserves (₹ Cr.) 14,871 14,838
P/BV 7.94 7.96
PE 14.97 15.03
From the Market
52 Week Low / High (₹) 285.00 / 344.00
All Time Low / High (₹) 0.42 / 407.90
Market Cap (₹ Cr.) 1,24,774
Equity (₹ Cr.) 845.1
Face Value (₹) 2
Industry PE 11.4

Management X-Ray of Hindustan Zinc:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *22.8322.8386.0586.0586.0587.5987.5999.3799.3799.37
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Hindustan Zinc

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales13,63614,78814,18117,27322,08221,11818,56122,62929,44034,098
Operating Expenses 6,9077,6617,5297,5349,81210,4489,71410,95713,21416,586
Manufacturing Costs5,0785,4955,8926,4877,8818,7918,6619,25211,90414,915
Material Costs345388235-314498-64-291239-278-143
Employee Cost 742842774722776905689760717843
Other Costs 743936628639657816655706871971
Operating Profit 6,7297,1286,6529,73912,27010,6708,84711,67216,22617,512
Operating Profit Margin (%) 49.3%48.2%46.9%56.4%55.6%50.5%47.7%51.6%55.1%51.4%
Other Income 2,0703,1402,7632,4741,7161,7821,9341,8191,2161,382
Interest 452417202246113112386290333
Depreciation 7856447451,8111,4831,8832,2792,5312,9173,264
Exceptional Items 0-30-300240000-1340
Profit Before Tax 7,9709,5708,62310,20012,49710,4568,39010,57414,10115,297
Tax 1,0651,3924481,8843,2212,5001,5852,5944,4714,777
Profit After Tax 6,9058,1788,1758,3169,2767,9566,8057,9809,63010,520
PAT Margin (%) 50.6%55.3%57.6%48.1%42.0%37.7%36.7%35.3%32.7%30.9%
Adjusted EPS (₹)16.319.419.419.722.018.816.118.922.824.9
Dividend Payout Ratio (%)21%23%144%149%36%106%102%113%79%303%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 37,41843,35337,38530,80535,93233,60540,31032,31334,28212,942
Share Capital 845845845845845845845845845845
Reserves 36,57342,50836,54029,96035,08732,76039,46531,46833,43712,097
Minority Interest0000000000
Debt0007,90802,5386116,4732,40010,037
Long Term Debt00000004,3122,1111,500
Short Term Debt0007,90802,5386112,1612898,537
Trade Payables5106319318249471,1741,4881,5452,0382,086
Others Liabilities 3,7495,00812,3819,5103,8453,2162,7444,3385,95110,389
Total Liabilities 41,67748,99250,69749,04740,72440,53345,15344,66944,67135,454

Fixed Assets

Gross Block13,58414,55116,52417,90420,65725,84129,61132,29235,36438,164
Accumulated Depreciation4,4375,1046,1397,9119,35511,06313,14215,48417,96820,544
Net Fixed Assets9,1479,44610,3859,99311,30214,77816,46916,80817,39617,620
CWIP 1,5412,0052,4283,0713,2202,2542,4891,9222,0752,107
Investments 22,50627,25435,22123,78320,22219,48820,32912,95715,05210,107
Inventories1,1981,2121,0581,9361,3791,5441,8351,4251,9531,862
Trade Receivables400659107136184196379406716380
Cash Equivalents 3,0313,532538,3801,964231,9189,3765,7631,412
Others Assets3,8534,8851,4451,7482,4532,2501,7341,7751,7161,966
Total Assets 41,67748,99250,69749,04740,72440,53345,15344,66944,67135,454

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 5,4715,5316,4517,5889,8008,7816,62110,56712,69115,133
PBT 7,9709,5708,62310,20012,49710,4568,39010,57414,10115,297
Adjustment -979-2,101-1,982-382-1862144831,1102,1802,420
Changes in Working Capital 125951632108517671-1117638-1199556
Tax Paid -1,645-2,033-1,822-2,338-3,028-2,560-1,135-1,755-2,391-3,140
Cash Flow From Investing Activity -3,955-3,807-3,23612,0072,396-1,092-2,648-2,4358466,558
Capex -1,709-1,611-1,533-1,987-2,723-3,341-3,618-2,427-2,968-3,437
Net Investments -2,976-2,964-2,21213,6674,6201,996447-1,5152,8788,665
Others 7297685093274992535231,5079361,330
Cash Flow From Financing Activity -1,577-1,902-3,214-11,266-18,612-9,630-2,098-9,697-12,258-23,224
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 00000005,016-2,204796
Interest Paid -45-24-10-194-243-208-170-244-332-287
Dividend Paid -1,532-1,879-3,204-18,972-10,469-11,9580-15,972-7,606-31,901
Others 0007,900-7,9002,536-1,9281,503-2,1168,168
Net Cash Flow -62-17818,329-6,416-1,9411,875-1,5651,279-1,533
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)19.8220.2520.2524.3927.822.8818.4121.9828.9244.55
ROCE (%)2323.7621.427.3434.1429.3322.0627.2637.4450.04
Asset Turnover Ratio0.390.360.310.380.50.520.430.50.660.85
PAT to CFO Conversion(x)0.790.680.790.911.061.10.971.321.321.44
Working Capital Days
Receivable Days101292336676
Inventory Days28272729272533262120
Payable Days4845371,213-1,020649-6,048-1,6692,316-2,352-5,263

Hindustan Zinc Ltd Stock News

Hindustan Zinc Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Hindustan Zinc on 19-Mar-2024 13:20 is ₹292.7.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 19-Mar-2024 13:20 the market cap of Hindustan Zinc stood at ₹1,24,773.7.
The latest P/E ratio of Hindustan Zinc as of 19-Mar-2024 13:20 is 14.97.
The latest P/B ratio of Hindustan Zinc as of 19-Mar-2024 13:20 is 7.94.
The 52-week high of Hindustan Zinc is ₹344.0 and the 52-week low is ₹285.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Hindustan Zinc is ₹29,079 ( Cr.) .

About Hindustan Zinc Ltd

Hindustan Zinc Ltd. Was incorporated in 1966. It is India’s largest and world’s second largest zinc-lead miner. It gives highest priority to safety of its people and conservation of scarce natural resources through technology and innovation. It is a subsidiary of Vedanta Limited. It is listed on the NSE and BSE. Hindustan Zinc’s operations comprise lead-zinc mines, hydrometallurgical zinc smelters, lead smelters, pyro metallurgical lead-zinc smelter as well as sulphuric acid and captive power plants in northwest India.  It has facilities located in Rampura Agucha, Chanderiya, Dariba, Kayad and Zawar in the state of Rajasthan, along with zinc-lead processing and refining facilities and a silver refinery at Pantnagar in the state of Uttarakhand.

Business area of the Company

Hindustan Zinc is one of the world’s largest and India’s only integrated Zinc-Lead-Silver producer. It is engaged in the mining and smelting of zinc, lead and silver metal in India. The Company's segments are Mining and smelting of zinc, lead and silver, and Wind energy.

Products

Zinc and lead metal produced at its world class Chanderiya Smelting complex are registered brands on the London Metal Exchange (LME). The LME brands are recognized worldwide as one of the most demanding standards, signifying highest product quality, uniform physical characteristics and consistency of ingots. This re-emphasizes its capability and commitment to meet the world class standards. It also has Quality Management Systems in place for all its products which complies with the requirements of ISO 9001:2008 standards.

  • Zinc- The produces refined zinc metal, which is used in a number of applications including galvanising, oxides, die castings and alloys.
  • Lead- the company produces Lead ingots with min 99.99% purity which is registered with LME under following brand names: Vedanta 99.99 and Vedanta Pb 99.99.
  • Silver- the company is India’s largest and one of the world’s leading integrated silver producer. it produces refined silver; recovered as a by-product of zinc-lead facility. Its high quality silver bullion having a minimum purity 99.9% of silver is listed on LBMA Good delivered List (LGD) - Hindustan Zinc Pantnagar Unit.
  • Sulphuric Acid- It produces 98% concentrated Sulphuric Acid at its production facilities in Chanderia, Debari and Dariba in the state of Rajasthan.

Awards

  • Hindustan Zinc received the Golden Peacock award for corporate governance.
  • It was honoured with safety Innovation award for implementation of innovative safety practices by Institution of Engineers (India).
  • Its Chanderiya captive power plant was Asian Power Plant of the Year 2007 and also was the Best Emission Reduction Project by Asian Power Charlton Media Group, Singapore.
  • HZL received Four Star rating for health and safety Performance by British Safety Council, UK.
  • Hindustan Zinc has been awarded ‘Best eCommerce Technology Innovation’ under e-Commerce category for Project Evolve.

Milestones

2010

  • The company started metal production from its Hydro-Zinc Smelter situated at Dariba Smelting Complex, Dariba - Rajasthan.
  • The company’s exploration activities yielded significant success with an increase of 33.7 million tonnes to its reserves and resources containing 3.4 million tonne of zinc-lead metal, prior to depletion in FY10.

2010

  • The company acquires the zinc unit of the UK’s Anglo American for $1.3 billion (Rs 5,850 crore).
  • The company inked pact with Suzlon for setting up 150 MW wind projects.

2011

  • The company is set to become one of the top producers of silver in the world, with an estimated output of 500 tonnes by March 2011, more than double its production at present.

2013

  • Hindustan Zinc’s CEO Akhilesh Joshi has been awarded with the MEAI-Adheraj Baldota Memorial Gold Medal Award-2012.

2014

  • Hindustan Zinc Limited Commissions Sewage Treatment Plant at Udaipur.
  • Hindustan Zinc awarded with Significant Achievement in HR Excellence by CII

2015

  • Hindustan Zinc and Cairn India signed MoUs with Rajasthan Government.
  • Hindustan Zinc (HZL) has installed refuge chambers inside its underground mines in the state of Rajasthan.

2016

  • 50 years of incorporation.
  • Hindustan Zinc Board declares Special Golden Jubilee Dividend.
  • Hindustan Zinc gets EC amended to scale up production.

2017

  • Sindesar Khurd Mine ore production capacity ramped up from 3.0 million MT to 3.7 million MT per annum.
  • Chanderiya Hydrometallurgical Zinc Smelter capacity enhanced from 4,20,000 MT to 4,30,000 MT per annum.
  • Dariba Hydrometallurgical Zinc Smelter capacity enhanced from 2,10,000 MT to 2,20,000 MT per annum.
  • 1.5 million MT pa capacity mill commissioned at Sindesar Khurd in record 14 months.
  • Successfully commissioned 16 MW of captive solar farms.

2020

  • Hindustan Zinc has signed a Memorandum of Understanding with Gujarat government to set up 300 KTPA (kilo tonnes per annum) greenfield zinc smelter at Doswada, GIDC (Gujarat Industrial Development Corporation).
  • Hindustan Zinc has set up an additional 10 million litres per day (MLD) sewage treatment plant to make Udaipur's lake and river free from pollution.
  • Hindustan Zinc has launched an online buying platform, EVOLVE, for non-ferrous metals.
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