Hindustan Zinc Q3 Results Review: Motilal Oswal Retains 'Neutral' Rating On The Stock — Here's Why

The management maintained its zinc CoP guidance of $1,050-1,100/t for FY25 and was confident in meeting the lower end of the band, adds the brokerage.

Hindustan Zinc's Ebitda stood at Rs 45 billion (YoY/QoQ: +28%/+9%) against our estimate of Rs 41 billion, 

(Source: Hindustan Zinc official website)

Hindustan Zinc ’s revenue was Rs 86 billion (YoY/QoQ: +18%/+4%) versus our estimate of Rs 82 billion. The growth was largely on account of higher zinc and silver prices and a strong dollar, marginally offset by lower metal volume.

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Motilal Oswal Report

Hindustan Zinc Ltd.'s Q3 FY25 performance was largely in line with our estimates. The company continues to focus on improving production with tight cost control. We retain our earnings estimates and expect Hindustan Zinc to maintain its focus on profitability.

At current market price, Hindustan Zinc trades at 7.5x FY27E enterprise value/Ebitda, and we believe the current valuation prices in all positive factors.

We reiterate our Neutral rating with a target price of Rs 460 (premised on eight times EV/Ebitda on FY27 estimates)

Click on the attachment to read the full report:

Motilal Oswal Hindustan Zinc Q3FY25 Results Review.pdf
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Also Read: Tata Steel Q3 Review - Motilal Oswal Retains 'Neutral' Stance On The Stock, Revises Target Price — Here's Why

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