Hindustan Zinc Ltd - Stock Valuation and Financial Performance

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

Hindustan Zinc Share Price

665.15 -7.45 -1.11%
as on 12-Jul'24 16:01

DeciZen - make an informed investing decision on Hindustan Zinc

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Semi Strong

Hindustan Zinc stock performance -

mw4me loader
P/E Ratio (SA):
36.09
Market Cap:
2,81,047.1 Cr.
52-wk low:
285
52-wk high:
807

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 Overvalued zone.

3. Is Hindustan Zinc Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Hindustan Zinc Ltd is likely to Rise-somewhat 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'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
ROCE % 21%19.6%21.5%24.6%21.7%17.5%19.9%25.4%34.3%34.3%-
Value Creation
Index
0.90.70.91.20.90.60.81.32.12.0-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 14,78814,18117,27322,08221,11818,56122,62929,44034,09828,93428,934
Sales YoY Gr.--4.1%21.8%27.8%-4.4%-12.1%21.9%30.1%15.8%-15.1%-
Adj EPS 2018.71921.318.315.818.322.724.818.418.4
YoY Gr.--6.5%1.4%12.3%-14.1%-13.8%15.8%23.9%9.6%-26.1%-
BVPS (₹) 102.688.572.985.179.595.476.581.130.636.136.1
Adj Net
Profit
8,4597,9108,0269,0077,7386,6737,7299,57310,4917,7537,787
Cash Flow from Ops. 5,5316,4517,5889,8008,7816,62110,56712,69115,16613,343-
Debt/CF from Ops. 00100.30.10.70.20.80.7-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 7.7%6.5%8.5%-15.1%
Adj EPS -1%0%0.1%-26.1%
BVPS-11%-14.6%-22.2%17.7%
Share Price 15.8% 23.9% 25.7% 101.2%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
2119.623.52722.318.121.328.844.45551.1
Op. Profit
Mgn %
50.746.956.455.650.847.851.655.251.447.348.6
Net Profit
Mgn %
57.255.846.540.836.63634.232.530.826.826.9
Debt to
Equity
000.300.100.20.10.90.60.3
Working Cap
Days
138111626469786150465087
Cash Conv.
Cycle
120-40-4-3-10-14-13-157

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 51.10%

Debt to equity has declined versus last 3 years average to 0.58

Sales growth has been subdued in last 3 years 8.54%

Net Profit has been subdued in last 3 years 0.11%

Sales growth is not so good in last 4 quarters at -15.23%

Latest Financials - Hindustan Zinc Ltd.

Standalone Consolidated
TTM EPS (₹) 18.4 18.4
TTM Sales (₹ Cr.) 28,934 28,932
BVPS (₹.) 36.1 36
Reserves (₹ Cr.) 14,388 14,350
P/BV 18.45 18.50
PE 36.09 36.22
From the Market
52 Week Low / High (₹) 285.00 / 807.00
All Time Low / High (₹) 0.42 / 807.00
Market Cap (₹ Cr.) 2,81,047
Equity (₹ Cr.) 845.1
Face Value (₹) 2
Industry PE 34.6

Management X-Ray of Hindustan Zinc:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *86.0586.0586.0587.5987.5999.3799.3799.3798.3599.04
* 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'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales14,78814,18117,27322,08221,11818,56122,62929,44034,09828,934
Operating Expenses 7,6617,5297,5349,81210,4489,71410,95713,21416,58615,273
Manufacturing Costs5,4955,8926,4877,8818,7918,6619,25211,90414,93313,770
Material Costs388235-314498-64-291239-278-143-156
Employee Cost 842774722776905689760717843826
Other Costs 936628639657816655706871953833
Operating Profit 7,1286,6529,73912,27010,6708,84711,67216,22617,51213,661
Operating Profit Margin (%) 48.2%46.9%56.4%55.6%50.5%47.7%51.6%55.1%51.4%47.2%
Other Income 3,1402,7632,4741,7161,7821,9341,8191,2161,3821,103
Interest 2417202246113112386290333955
Depreciation 6447451,8111,4831,8832,2792,5312,9173,2643,466
Exceptional Items -30-300240000-13400
Profit Before Tax 9,5708,62310,20012,49710,4568,39010,57414,10115,29710,343
Tax 1,3924481,8843,2212,5001,5852,5944,4714,7772,556
Profit After Tax 8,1788,1758,3169,2767,9566,8057,9809,63010,5207,787
PAT Margin (%) 55.3%57.6%48.1%42.0%37.7%36.7%35.3%32.7%30.9%26.9%
Adjusted EPS (₹)19.419.419.722.018.816.118.922.824.918.4
Dividend Payout Ratio (%)23%144%149%36%106%102%113%79%303%71%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 43,35337,38530,80535,93233,60540,31032,31334,28212,94215,233
Share Capital 845845845845845845845845845845
Reserves 42,50836,54029,96035,08732,76039,46531,46833,43712,09714,388
Minority Interest0000000000
Debt007,90802,5386116,4732,40010,0376,157
Long Term Debt0000004,3122,1111,5004,246
Short Term Debt007,90802,5386112,1612898,5371,911
Trade Payables6319318249471,1741,4881,5452,0382,0862,102
Others Liabilities 5,00812,3819,5103,8453,2162,7444,3385,95110,38910,412
Total Liabilities 48,99250,69749,04740,72440,53345,15344,66944,67135,45433,904

Fixed Assets

Gross Block14,55116,52417,90420,65725,84129,61132,29235,36438,08941,741
Accumulated Depreciation5,1046,1397,9119,35511,06313,14215,48417,96820,52723,795
Net Fixed Assets9,44610,3859,99311,30214,77816,46916,80817,39617,56217,946
CWIP 2,0052,4283,0713,2202,2542,4891,9222,0752,1651,638
Investments 27,25435,22123,78320,22219,48820,32912,95715,05210,10710,452
Inventories1,2121,0581,9361,3791,5441,8351,4251,9531,8621,924
Trade Receivables659107136184196379406716380161
Cash Equivalents 3,532538,3801,964231,9189,3765,7631,412173
Others Assets4,8851,4451,7482,4532,2501,7341,7751,7161,9661,610
Total Assets 48,99250,69749,04740,72440,53345,15344,66944,67135,45433,904

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity 5,5316,4517,5889,8008,7816,62110,56712,69115,16613,343
PBT 9,5708,62310,20012,49710,4568,39010,57414,10115,29710,343
Adjustment -2,101-1,982-382-1862144831,1102,1802,4533,358
Changes in Working Capital 951632108517671-1117638-11995561399
Tax Paid -2,033-1,822-2,338-3,028-2,560-1,135-1,755-2,391-3,140-1,757
Cash Flow From Investing Activity -3,807-3,23612,0072,396-1,092-2,648-2,4358466,525-3,405
Capex -1,611-1,533-1,987-2,723-3,341-3,618-2,427-2,968-3,470-3,488
Net Investments -2,964-2,21213,6674,6201,996447-1,5152,8788,665-133
Others 7685093274992535231,5079361,330216
Cash Flow From Financing Activity -1,902-3,214-11,266-18,612-9,630-2,098-9,697-12,258-23,224-9,946
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 0000005,016-2,2047963,330
Interest Paid -24-10-194-243-208-170-244-332-287-1,029
Dividend Paid -1,879-3,204-18,972-10,469-11,9580-15,972-7,606-31,901-5,493
Others 007,900-7,9002,536-1,9281,503-2,1168,168-6,754
Net Cash Flow -17818,329-6,416-1,9411,875-1,5651,279-1,533-8
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)20.2520.2524.3927.822.8818.4121.9828.9244.5555.28
ROCE (%)23.7621.427.3434.1429.3322.0627.2637.4450.0445.95
Asset Turnover Ratio0.360.310.380.50.520.430.50.660.850.83
PAT to CFO Conversion(x)0.680.790.911.061.10.971.321.321.441.71
Working Capital Days
Receivable Days12923366763
Inventory Days27272927253326212024
Payable Days5371,213-1,020649-6,048-1,6692,316-2,352-5,263-4,899

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 12-Jul-2024 16:01 is ₹665.1.
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 12-Jul-2024 16:01 the market cap of Hindustan Zinc stood at ₹2,81,047.1.
The latest P/E ratio of Hindustan Zinc as of 12-Jul-2024 16:01 is 36.09.
The latest P/B ratio of Hindustan Zinc as of 12-Jul-2024 16:01 is 18.45.
The 52-week high of Hindustan Zinc is ₹807.0 and the 52-week low is ₹285.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Hindustan Zinc is ₹28,934 ( 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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