The company reported a revenue of ₹13,544 crore compared to a CNBC-TV18 poll of ₹11,999 crore. Its earnings before interest, tax, depreciation and amortization (EBITDA) increased to ₹7,706 crore compared to ₹7,117 crore estimated by the Street.
Average Zinc price on the LME was at $3,241/MT at the end of the March quarter, compared to $2,838/MT in the previous year and $3,165/MT in the previous quarter.
Average price of Silver on the LME was at $84.3 per ounce compared to $31.9 per ounce in the previous year and $54.7 per ounce in the prior quarter.
Hindustan Zinc’s net cash position in the fourth quarter was at ₹5,600 crore compared to ₹300 crore sequentially.
Brokerages were positive on the company post its fourth quarter numbers and have projected up to a 22.7% upside from its previous close.
Jefferies has a “buy” rating on the stock with a price target of ₹700 apiece. The stock is trading at 8.6 times its estimated FY27 enterprise value (EV) / EBITDA compared to its long-term average of 7.8 times, but it is justified for the rising share of silver in its EBIT, Jefferies said.
IIFL has upgraded its rating on Hindustan Zinc to “buy” from “add” and increased its price target marginally to ₹722 from ₹712 apiece.
It said Hindustan Zinc’s EBITDA will likely log a 14% compound annual growth rate (CAGR) over FY26-FY28 with margins likely to rise to 62% from 54% in FY26. It said the recent stock correction makes risk reward favourable.
Nuvama has also upgraded its rating on the stock to “buy” and has a price target of ₹700 apiece. Along with the rating, Nuvama has upgraded its EBITDA projections by 21% and 28% respectively over the next two years as well.
Hindustan Zinc’s management has targeted silver volumes of 680 tonne in FY27 compared to 627 tonne in FY26. The renewable energy contribution will also move higher to 30% compared to the current 18%. The management also added that some work may start on the Hindustan Zinc demerger in FY27.
Shares of Hindustan Zinc are trading 6.7% higher on Monday in response to the results at ₹628.05. The stock has seen a jump of 23% in the last one month.
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