Buy Hindustan Zinc, target price Rs 335: JM Financial

JM Financial has buy call on Hindustan Zinc with a target price of Rs 335. The current market price of Hindustan Zinc is Rs 316.6.

Hindustan Zinc, incorporated in the year 1966, is a Large Cap company (having a market cap of Rs 133203.18 Crore) operating in Metals - Non Ferrous sector.

Hindustan Zinc key Products/Revenue Segments include Scrap, Export Incentives, Wind Energy and Other Operating Revenue for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 8863.00 Crore, up 7.90 % from last quarter Total Income of Rs 8214.00 Crore and down -2.33 % from last year same quarter Total Income of Rs 9074.00 Crore. Company has reported net profit after tax of Rs 2583.00 Crore in latest quarter.

The company’s top management includes Ms.Kiran Agarwal, Mr.Arun Misra, Mr.Akhilesh Joshi, Mr.Navin Agarwal, Ms.Farida M Naik, Mr.Anjani Kumar Agrawal, Mrs.Nirupama Kotru, Dr.Veena Kumari Dermal. Company has S R Batliboi & Co. LLP as its auditors. As on 31-03-2023, the company has a total of 423 Crore shares outstanding.

Investment RationaleThe brokerage remains positive on HZL given its presence in the lower end of the global cost curve facilitated by high grade captive mines sufficient to meet requirements for decades, 100% captive power plants, sizeable scale, diversified revenue stream with increasing contribution from silver sales.
Promoter/FII Holdings
Promoters held 64.92 per cent stake in the company as of 31-Mar-2023, while FIIs owned 0.8 per cent, DIIs 2.94 per cent.