Hindustan Zinc Ltd Stock Analysis

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

BSE Share Price 23-Sep-2022 18:01
278.40 -3.85 (-1.36%)

DeciZen - Make an Informed Decision on Hindustan Zinc

Overall Rating

1. Quality

2. Valuation

Somewhat Undervalued

3. Price Trend

Hindustan Zinc Price Chart

P/E Ratio (SA) :
10.95
Market Cap :
1,17,632.9 Cr.
52-wk low :
242.4
52-wk high :
407.9
Bole Toh?

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 Somewhat Undervalued 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'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 22.1%20.3%21%19.6%21.5%23.1%20.6%16.4%19.2%25.4%-
Value Creation Index 1.00.80.90.70.91.10.80.50.71.3-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 12,70013,63614,78814,18117,27322,08221,11818,56122,62929,44031,648
YoY Gr. Rt. %-7.4%8.5%-4.1%21.8%27.8%-4.4%-12.1%21.9%30.1%-
Adj EPS 15.416.62018.7192017.414.717.622.725.4
YoY Gr. Rt. %-8%20.4%-6.5%1.4%5.5%-13.1%-15.3%19.6%28.5%-
BVPS (₹) 76.488.6102.688.572.985.179.595.476.581.188.5
Adj Net Profit 6,5067,0298,4597,9108,0268,4657,3536,2277,4499,57310,741
Cash Flow from Ops. 4,7855,4715,5316,4517,5889,8008,7816,62110,56712,691-
Debt/CF from Ops. 0000100.30.10.70.2-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 9.8%11.3%11.7%30.1%
Adj EPS 4.4%3.6%9.2%28.5%
BVPS 0.72.20.76.1
Share Price 7.8% -0.9% 11.3% -13.7%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 2220.22119.623.525.421.216.920.528.830
Op. Profit Mgn % 51.450.750.746.956.455.650.847.851.655.256.3
Net Profit Mgn % 51.251.657.255.846.538.334.833.632.932.533.9
Debt to Equity 00000.300.100.20.1-
Working Cap Days 931211381116264697861500
Cash Conv. Cycle 1315120-40-4-3-10-140

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 30.00%

Sales growth is growing at healthy rate in last 3 years 11.71%

Sales growth is good in last 4 quarters at 28.28%

Net Profit has been subdued in last 3 years 9.20%

Latest Financials - Hindustan Zinc Ltd.

Standalone Consolidated
TTM EPS (₹) 25.4 22.8
TTM Sales (₹ Cr.) 31,648 29,440
BVPS (₹.) 88.5 88.5
Reserves (₹ Cr.) 36,530 36,528
P/BV 3.15 3.14
PE 10.95 12.20
From the Market
52 Week Low / High (₹) 242.40 / 407.90
All Time Low / High (₹) 0.42 / 407.90
Market Cap (₹ Cr.) 1,17,633
Equity (₹ Cr.) 845.1
Face Value (₹) 2
Industry PE 10

Management X-Ray of Hindustan Zinc :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.0022.8322.8322.8322.8322.8322.8386.0586.05
* Pledged shares as % of Promoter's holding (%)

Event Update

Login/Register to view analysis.

Analyst's Notes

Key Ratios of Hindustan Zinc

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

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.
Read More Read Less
You have 2 views remaining as a Guest User. To get DeciZen Rating of 3,500+ Stocks based on their Quality, Valuation and Price Trend Login | Register Now