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Hindustan Zinc Ltd. Stock Analysis

Large Cap
Evaluated by 6996 users | BSE: 500188 | NSE: HINDZINC |
Metal - Non Ferrous
Hindustan Zinc (HZL) was incorporated from the erstwhile Metal Corporation of India on January 10, 966 as a Public Sector Undertaking. In April 2002, Sterlite Opportunities and Ventures Limited (SOVL) made an open offer for acquisition of shares of the company; consequent to the...
1. Right Stock
Very Good
2. Right Price
3. Right Time

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'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 24.06%20.61%22.06%20.26%20.99%16.68%18.61%23.14%20.62%16.36%
Value Creation Index 0.640.450.580.450.500.190.330.650.47NA
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 10,03911,40512,70013,63614,78814,18117,27322,08221,11818,561
Y-o-Y Gr. Rt.-13.6%11.4%7.4%8.5%-4.1%21.8%27.8%-4.4%-12.1%
Adjusted EPS (Rs.) 11.5612.0315.416.6320.0215.9116.4220.0317.414.74
Y-o-Y Gr. Rt.-4.1%28%8%20.4%-20.5%3.2%22%-13.1%-15.3%
Book Value per Share (Rs.) 53.3363.6276.3988.56102.688.4972.9185.0579.5495.41
Adjusted Net Profit 4,8875,0826,5067,0298,4596,7216,9398,4657,3536,227
Net Op. Cash Flow (Rs. Cr.) 4,2724,4924,7855,4715,5316,4517,5889,8008,7816,621
Debt to Cash Flow from Ops 0000001.0400.290.09
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 7.1%4.7%2.4%-12.1%
Adjusted EPS 2.7%-5.9%-3.5%-15.3%
Book Value per Share 6.7-1.49.420
Share Price 7.8% 8.8% -9% 13.4%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 24.0420.5721.9920.1720.9516.6520.3525.3721.1516.85
Operating Profit Margin (%) 55.8653.2251.450.7450.7146.9156.3855.5750.7647.79
Net Profit Margin (%) 48.6744.5651.2351.5557.247.440.1738.3434.8233.55
Debt to Equity 0000000.2600.080.02
Working Capital Days 57739312113811162646978
Cash Conversion Cycle -571315120-40-4-2
Entity Percentage Holding
Promoters 64.92%
Institutions 33.21%
Non-Institutions 1.87%
Pledged *0.000.000.000.000.000.000.000.000.0022.83
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Hindustan Zinc Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Hindustan Zinc Ltd. is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Hindustan Zinc Ltd.'s performance infers:

Hindustan Zinc Ltd. earnings have declined by -5.9%, whereas share price has appreciated 8.8% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Hindustan Zinc Ltd. share prices over the last 10 years. Here is what we found out:

Hindustan Zinc Ltd. share price has appreciated 6.7% annually over the past ten years.

Hindustan Zinc (HZL) was incorporated from the erstwhile Metal Corporation of India on January 10, 966 as a Public Sector Undertaking. In April 2002, Sterlite Opportunities and Ventures Limited (SOVL) made an open offer for acquisition of shares of the company; consequent to the disinvestment of Government of India's (GOI) stake of 26% including management control to SOVL and acquired additional 20% of shares from public, pursuant to the SEBI Regulations 1997. In August 2003, SOVL

Hindustan Zinc (HZL) was incorporated from the erstwhile Metal Corporation of India on January 10, 966 as a Public Sector Undertaking. In April 2002, Sterlite Opportunities and Ventures Limited (SOVL) made an open offer for acquisition of shares of the company; consequent to the disinvestment of Government of India's (GOI) stake of 26% including management control to SOVL and acquired additional 20% of shares from public, pursuant to the SEBI Regulations 1997. In August 2003, SOVL acquired additional shares to the extent of 18.92% of the paid up capital from GOI in exercise of 'call option' clause in the share holder's agreement between GOI and SOVL.

With the above additional acquisition, SOVL's stake in the company has gone up to 64.92%. Thus GOI's stake in the company now stands at 29.54%.

Today it is India’s only integrated producer of zinc and lead. It is among the world’s leading integrated zinc and lead producers.

The company’s smelters are located at Chanderiya, Debari and Visakhapatnam. HZL’s mines are located at Zawar, Dariba and Rampura Agucha.

Business Activities

It manufacturers three qualities of zinc -- special high grade zinc used in construction, infrastructure, household appliances etc; high grade zinc and prime western zinc.

HZL manufactures 99.99% pure lead used in lead acid battery, ceramic glazes, electrodes, etc.

It manufactures silver used in photographic material, conducter, jewellery, etc.

The mineral major produces cadmium, whose purity ranges from 99.95-99.99% .It is used in Ni-Cd batteries, stablizers, coating and alloys.

HZL also manufactures sulphuric acid used in fertilizers, dyes, textiles, sugar refining, etc.

Milestones:

Mar 31, 2010: The company started metal production from its Hydro-Zinc Smelter situated at Dariba Smelting Complex, Dariba - Rajasthan.

May 06, 2010: 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.

May 11, 2010: The company acquires the zinc unit of the UK’s Anglo American for $1.3 billion (Rs 5,850 crore).

Jan 06, 2011: The company inks pact with Suzlon for setting up 150 MW wind projects.

Jan 20, 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.

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

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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