- Hindustan Zinc reported a net income of 29.8 billion rupees for the fourth quarter, a 46% increase year-over-year.
- This net income figure surpassed the market estimate of 25.21 billion rupees.
- The company’s revenue rose to 90.41 billion rupees, marking a 20% increase compared to the previous year.
- Total costs were recorded at 55.2 billion rupees, showing an 8.4% increase year-over-year.
- Power and fuel expenses decreased by 1.2% to 6.72 billion rupees, beating the estimated expenses of 7.02 billion rupees.
- Other income reported was 2.3 billion rupees, which was an 18% decrease from the previous year.
- The board approved the extension of CEO Misra’s tenure by one year.
- Market analysts’ recommendations include 4 buys, 4 holds, and 7 sells.
Hindustan Zinc on Smartkarma
Analysts on Smartkarma are keeping a keen eye on Hindustan Zinc, as highlighted by Rahul Jain‘s report titled “Hindustan Zinc (HZ IN) Silver Rally Is a Sweetener”. Jain points out that Hindustan Zinc is primed for potential earnings upgrades due to the surge in silver prices, growth expansion plans, and the possibility of a stock re-rating despite concerns over valuation. The company is gearing up for substantial growth with a planned expenditure of US$2-2.5 billion to double its output over the next 3-5 years. Although trading at a slight premium compared to historic averages, there is optimism that the stock could re-rate amidst this strong earnings upgrades cycle. However, the risk of stake sales by key holders remains a factor to watch.
A look at Hindustan Zinc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Hindustan Zinc Limited is positioned with a generally positive long-term outlook. With a high Dividend score of 5, investors can expect good returns in the form of dividends from this company. Furthermore, the company has a strong Momentum score of 4, indicating that it is likely to continue its upward trajectory in the market. While Value, Growth, and Resilience scores are moderate, they showcase stable performance and potential growth opportunities for the company.
Hindustan Zinc Limited, a specialist in the exploration, mining, and smelting of zinc, lead, and other non-ferrous metals, offers a diverse range of products including zinc ore, lead zinc concentrate, zinc metal, lead metal, cadmium metal, silver metal, and sulfuric acid. With a solid Dividend score and promising Momentum, the company appears well-positioned for sustained growth and profitability in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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