Hindustan Zinc Adjusts Evaluation Score Amid Mixed Performance Indicators and Pledged Shares Concerns

Hindustan Zinc, a prominent player in the Non-Ferrous Metals industry, has recently undergone an adjustment in its evaluation score. This revision reflects a shift in technical trends, moving from a mildly bullish stance to a more neutral position.
The stock's performance indicators reveal a mixed picture. Over the past week, Hindustan Zinc has experienced a return of -12.97%, contrasting with a modest decline of -1.30% in the Sensex. In the longer term, the stock has generated a return of -29.85% over the past year, while its profits have increased by 34.2%. This discrepancy is highlighted by a PEG ratio of 0.5, indicating a potentially expensive valuation relative to its growth.

Despite a high return on capital employed (ROCE) of 91.9, the company faces challenges with a significant portion of promoter shares pledged, which could exert additional pressure in a declining market. Furthermore, while Hindustan Zinc has reported positive financial results for the last four consecutive quarters, its operating profit growth over the past five years has been modest at an annual rate of 1.09%.

With a market capitalization of Rs 1,91,365 crore, Hindustan Zinc remains a dominant force in its sector, accounting for 46.14% of the entire industry.

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