Neutral on Hindustan Zinc, target price Rs 460: Motilal Oswal Financial Services

Motilal Oswal Financial Services has a neutral call on Hindustan Zinc Ltd. with a target price of Rs 460. The current market price of Hindustan Zinc is Rs 441.55 . Hindustan Zinc, incorporated in 1966, is a Large Cap company with a market cap of Rs 186484.45 crore, operating in Metals - Non Ferrous sector.

Hindustan Zinc's key products/revenue segments include Scrap, Export Incentives, Other Operating Revenue and Wind Energy for the year ending 31-Mar-2024.



Financials
For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 8832.00 crore, up 3.64% from last quarter Total Income of Rs 8522.00 crore and up 16.12% from last year same quarter Total Income of Rs 7606.00 crore. The company has reported net profit after tax of Rs 2678.00 crore in the latest quarter.

The company's top management includes Ms.Priya Agarwal Hebbar, Mr.Arun Misra, Mr.Navin Agarwal, Mr.Akhilesh Joshi, Mr.Kannan Ramamirtham, Ms.Pallavi Joshi Bakhru, Dr.Veena Kumari Dermal, Mrs.Nirupama Kotru, Ms.Farida M Naik. Company has S R Batliboi & Co. LLP as its auditors. As on 31-12-2024, the company has a total of 423 crore shares outstanding.

Investment Rationale
Hindustan Zinc's performance was largely in line with Motilal Oswal Financial Services estimates. The company continues to focus on improving production with tight cost control. The brokerage retains its earnings estimates and expect HZL to maintain its focus on profitability. At CMP, Hindustan Zinc trades at 7.5x FY27E EV/EBITDA, and they believe the current valuation prices in all positive factors. Motilal Oswal reiterates its Neutral rating with a target price of Rs 460 (premised on 8x EV/EBITDA on FY27 estimates).

Promoter/FII Holdings
Promoters held 63.42 per cent stake in the company as of 31-Dec-2024, while FIIs owned 1.38 per cent, DIIs 4.12 per cent.