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Hindustan Zinc Ltd Stock Analysis

Large Cap
Evaluated by 7446 users | BSE: 500188 | NSE: HINDZINC |
Metal - Non Ferrous

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...

Analysis of Financial Track Record

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'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Capital Employed 20.61%22.06%20.26%20.99%19.62%21.46%23.14%20.62%16.36%19.2%-
Value Creation Index 0.450.580.450.500.400.530.650.470.170.37-
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 11,40512,70013,63614,78814,18117,27322,08221,11818,56122,62924,551
Y-o-Y Gr. Rt.-11.4%7.4%8.5%-4.1%21.8%27.8%-4.4%-12.1%21.9%-
Adjusted EPS (Rs.) 12.0315.416.6320.0218.7218.9920.0317.414.7417.6320.36
Y-o-Y Gr. Rt.-28%8%20.4%-6.5%1.4%5.5%-13.1%-15.3%19.6%-
Book Value per Share (Rs.) 63.6276.3688.56102.688.4972.9185.0579.5495.4176.4881.17
Adjusted Net Profit 5,0826,5067,0298,4597,9108,0268,4657,3536,2277,4498,603
Net Op. Cash Flow (Rs. Cr.) 4,4924,7855,4715,5316,4517,5889,8008,7816,62110,567-
Debt to Cash Flow from Ops 000001.0400.290.090.68-
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Hindustan Zinc Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 7.9%9.8%0.8%21.9%
Adjusted EPS 4.3%-1.2%-4.2%19.6%
Book Value per Share 2.1-2.9-3.5-19.8
Share Price 10.4% 7.1% 1.9% 55%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity (%) 20.5721.9920.1720.9519.623.5425.3721.1516.8520.5125.83
Operating Profit Margin (%) 53.2251.450.7450.7146.9156.3855.5750.7647.7951.5855.62
Net Profit Margin (%) 44.5651.2351.5557.255.7846.4638.3434.8233.5532.9235.04
Debt to Equity 000000.2600.080.020.22-
Working Capital Days 73931211381116264697861-
Cash Conversion Cycle 71315120-40-4-3-10-
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Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 64.92%
Institutions 33.17%
Non-Institutions 1.91%
Pledged *0.000.000.000.000.000.0022.8322.8322.8322.83
* Pledged shares as % of Promoter's holding (%)
Past 10 year's financial track record analysis by Moneyworks4me indicates that Hindustan Zinc Ltd is a good quality company.

Hindustan Zinc Ltd's earnings have declined by -1.2%, whereas share price has appreciated 7.1% CAGR over the past five years, indicating the company’s share price is likely overvalued. However, for specific investment actions please consult your investment advisor.

Hindustan Zinc Ltd share price has appreciated 10.5% annually (CAGR) over the past ten years.

Past 10 years financial track record analysis and assessment of future prospects by Moneyworks4me indicates that Hindustan Zinc Ltd is a good long term investment. However, you need to ensure you buy at a right price to earn good returns.

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

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.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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