Hindustan Zinc Ltd (HINDZINC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hindustan Copper

Vedanta

Hindalco Inds.

Natl. Aluminium

Lloyds Enterpris

Hindustan Zinc

Pondy Oxides

Jain Resource

Dec.Gold Mines

Vedanta Aluminiu

CMR Green Tech.

Why is Hindustan Zinc Ltd ?

High Management Efficiency with a high ROCE of 91.07%

Company has a Debt to Equity ratio (avg) of 0.03 times

With a growth in Net Profit of 8.66%, the company declared Outstanding results in Jun 26

The company has declared positive results for the last 3 consecutive quarters
OPERATING CF(Y) Highest at Rs 17,008.00 Cr
OPERATING PROFIT TO INTEREST(Q) Highest at 60.98 times
ROCE(HY) Highest at 61.75%

With ROE of 61, it has a Very Expensive valuation with a 11.2 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 41.56%, its profits have risen by 65.5% ; the PEG ratio of the company is 0.2

90.67% of Promoter Shares are Pledged

In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices

Market Beating Performance

The stock has generated a return of 41.56% in the last 1 year, much higher than market (BSE500) returns of 4.11%

With its market cap of Rs 2,49,336 cr, it is the biggest company in the sector and constitutes 54.90% of the entire sector

Its annual Sales of Rs 46,820.00 are 25.81% of the industry

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hindustan Zinc should be less than 10%
Overall Portfolio exposure to Non - Ferrous Metals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Non - Ferrous Metals)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Hindustan Zinc for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hindustan Zinc

41.56%

1.06

39.26%

Sensex

-2.63%

-0.19

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.73%

EBIT Growth (5y)

10.96%

EBIT to Interest (avg)

27.62

Debt to EBITDA (avg)

0.56

Net Debt to Equity (avg)

-0.22

Sales to Capital Employed (avg)

1.23

Tax Ratio

25.27%

Dividend Payout Ratio

Pledged Shares

90.67%

Institutional Holding

35.07%

ROCE (avg)

88.73%

ROE (avg)

59.98%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

11.22

EV to EBIT

11.09

EV to EBITDA

9.48

EV to Capital Employed

14.08

EV to Sales

5.32

PEG Ratio

0.23

Dividend Yield

1.83%

ROCE (Latest)

103.34%

ROE (Latest)

61.04%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

43What is working for the Company

OPERATING CF(Y)

Highest at Rs 17,008.00 Cr

OPERATING PROFIT TO INTEREST(Q)

Highest at 60.98 times

ROCE(HY)

Highest at 61.75%

PBDIT(Q)

Highest at Rs 8,050.00 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 58.56%

PBT LESS OI(Q)

At Rs 6,998.00 cr has Grown at 60.9% (vs previous 4Q average

PAT(Q)

Highest at Rs 5,469.00 cr.

DEBT-EQUITY RATIO(HY)

Lowest at 0.39 times

NET SALES(Q)

At Rs 13,747.00 cr has Grown at 34.6% (vs previous 4Q average

EPS(Q)

Highest at Rs 12.94

-2What is not working for the Company

DPR(Y)

Lowest at 0.00%

DEBTORS TURNOVER RATIO(HY)

Lowest at 98.23 times

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Here's what is working for Hindustan Zinc

Operating Profit to Interest - Quarterly

Highest at 60.98 times and Grown

each quarter in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Cash Flow - Annually

Highest at Rs 17,008.00 Cr and Grown

each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Net Sales - Quarterly

Highest at Rs 13,747.00 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 8,050.00 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 58.56% and Grown

each quarter in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 6,998.00 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 6,998.00 cr has Grown at 60.9% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 4,348.25 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 5,469.00 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 5,469.00 cr has Grown at 58.4% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 3,453.32 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

At Rs 13,747.00 cr has Grown at 34.6% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 10,211.00 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 12.94

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Debt-Equity Ratio - Half Yearly

Lowest at 0.39 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Hindustan Zinc

Debtors Turnover Ratio- Half Yearly

Lowest at 98.23 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio (DPR) - Annually

Lowest at 0.00%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Non Operating Income - Quarterly

Highest at Rs 316.00 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income