Hindustan Zinc
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Hindustan Zinc's recent operational performance highlights a strategic focus on capacity expansion and disciplined capital allocation, which are pivotal for driving revenue growth and enhancing margins. Management's commitment to doubling capacity, particularly through projects like the Debari smelter and tailings reprocessing, positions the company favorably within a structurally growing market for silver and zinc. Despite facing near-term challenges from increased power costs due to reduced domestic coal linkage, the overall outlook remains positive, supported by strong cash generation and a robust balance sheet. Vista's forecast anticipates accelerating revenue growth and improving margins, underpinned by favorable pricing dynamics and operational efficiencies. The non-ferrous metals industry is experiencing a growth phase, bolstered by rising demand and improving pricing power, which aligns with Hindustan Zinc's strategic initiatives. Over the next 12-24 months, key opportunities include the successful execution of capacity expansion projects and leveraging the growing demand for critical minerals. However, watchpoints include potential cost pressures from energy inputs and the need for effective management of capital expenditures
Why We Like This Stock
- Management's focus on doubling capacity through strategic projects enhances long-term revenue growth potential
- Strong operational performance characterized by record-low production costs supports margin improvement
- The non-ferrous metals industry's growth phase provides a favorable backdrop for Hindustan Zinc's product demand
Things To Watch Out For
- Increased power costs due to reduced domestic coal linkage may pressure margins in the near term
- Execution risks associated with significant capital expenditure plans could impact growth timelines
- Current valuations may already reflect anticipated growth drivers, limiting upside potential
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 28,932 | 34,083 | 40,658 | 51,410 | 57,179 |
| Profit Before Tax (Cr.) | 10,290 | 13,617 | 18,337 | 29,488 | 30,276 |
| PBT Margin | 35.6% | 40.0% | 4510.1% | 57.4% | 52.9% |
| Net Profit (Cr.) | 7,745 | 10,376 | 13,770 | 22,240 | 22,834 |
| Earnings Per Share | 18.3 | 24.6 | 32.6 | 52.6 | 54.0 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Citigroup | ▼ Sell | 480 | 27-Jul-2026 |
| HSBC | ▲ Buy | 770 | 27-Jul-2026 |
| Jeffries | ▲ Buy | 660 | 27-Jul-2026 |
| Kotak Securities | ▼ Sell | 540 | 26-Apr-2026 |
| Motilal Oswal | ► Neutral | 570 | 27-Jul-2026 |
Company Overview
Show Company Profile
Hindustan Zinc Limited explores for, extracts, and processes minerals in India, rest of Asia, and internationally. The company operates through two segments, Zinc, Lead, Silver & Others; and Wind Energy. The company produces refined zinc and lead, precious metals, and silver; sulphuric acid; rock-phosphate; and metals and related alloys. It also operates captive thermal with a capacity of 550.00 megawatt, wind power plant with a capacity of 273.50 megawatt, and solar power with capacity of 40.70 megawatt, and waste heat recovery boiler power plants of capacity 63.10 megawatt. In addition, the company offers di ammonium phosphate/nitrogen, phosphorus, and potassium fertilizers. The company was incorporated in 1966 and is based in Udaipur, India. Hindustan Zinc Limited operates as a subsidiary of Vedanta Limited.