Hindustan Zinc shares surge: Should investors buy?
Company's Q1 profit jumps 145%, brokers maintain 'Buy' ratings.
1Record profits at Hindustan Zinc
Hindustan Zinc reported a 145% YoY increase in net profit to Rs 5,469 crore in Q1 FY27. Revenue grew 77% to Rs 13,747 crore. This performance drove the company's shares up 2% on BSE, reaching a daily high of Rs 541.
2Cost control and price advantages
Lower production costs and high metal prices pushed EBITDA to Rs 7,990 crore, exceeding estimates. Zinc and silver price increases significantly boosted profitability. Nuvama set a target price of Rs 700 per share.
3Brokerage perspectives
JM Financial maintained its 'Buy' recommendation, citing industry-leading cost position and strong balance sheet. Motilal Oswal kept a 'Neutral' rating, noting current valuations reflect positive factors. Different target prices present various scenarios for investors.
4Capacity expansion plans
Hindustan Zinc aims to double current capacity with a 250ktpa zinc smelter expansion project scheduled for completion in Q2 FY29. This long-term growth move could enhance the company's earnings visibility.
5Risks and opportunities
LME and silver price fluctuations may serve as short-term earnings catalysts. However, limited capacity increases and metal price volatility present both risks and opportunities. Investors should closely monitor industry dynamics.
6Key takeaways for investors
Hindustan Zinc demonstrates strong performance through high metal prices and cost control. Most brokers' 'Buy' recommendations and 20-32% potential upside enhance the stock's appeal. However, current valuations already reflect positive factors.
Original article: Economic Times — Hindustan Zinc hisseleri yükseliyor: Yatırım yapmalı mı?