Hindustan Zinc Ltd, incorporated in the year 1966, is a Large Cap company with a market cap of Rs 131491.93 Crore, operating in Metals – Non Ferrous sector.
Hindustan Zinc’s key Products/Revenue Segments include Wind Energy, Scrap, Other Operating Revenue and Export Incentives for the year ending 31-Mar-2020.
Investment Rationale
Motilal Oswal stated that, the company’s management highlighted that the zinc demand environment remains buoyant, driven by China. However, domestic zinc demand is impacted in Apr’21 by a surge in the number of Covid cases.
Motilal Oswal expects a 9 per cent CAGR in Hindustan Zinc volumes over FY21–23E, which would drive a 19 per cent EBITDA CAGR. However, it believes this growth is factored in the current valuation; therefore, Motilal Oswal rates it Neutral.
Financials
For the quarter ended 31-03-2021, the company has reported a Standalone Total Income of Rs 7242.00 Crore, up 11.71 per cent from last quarter’s Total Income of Rs 6483 Crore and up 48.98 per cent from last year same quarter’s Total Income of Rs 4861.00 Crore. Company has reported net profit after tax of Rs 2481.00 Crore in latest quarter.
Promoter/FII Holdings
Promoters held 64.2 per cent stake in the company as of Dec 30, 2020, while FIIs held 1.1 per cent, DIIs 2.4 per cent and public and others 32.3 per cent.
