Vedanta Group-backed zinc giant, Hindustan Zinc has outperformed its Indian parent company Vedanta Ltd on BSE and NSE in its January 2025 performance so far. Going ahead, Hindustan Zinc will be in focus due to its Q3 results for FY25. The company has announced its quarterly results date accordingly. In Q3FY25, Hindustan Zinc is expected to report better earnings on a YoY basis than sequentially. Revenue is expected to see single-digit growth, while PAT is seen to post double-digit percentage growth performance.

Hindustan Zinc Share Price:

After market hours of January 23, HZL share price stood at Rs 473.75 apiece, up by nearly 1% on BSE with a market cap of Rs 2,00,174.49 crore. Currently, the stock’s 52-week high and low is at Rs 807 apiece and Rs 285 apiece respectively.

The stock’s price-to-equity ratio is at 22.91x, while the return on equity is at a gigantic 114.32%, which is very strong. Year-to-date, HZL shares have gained by 7% on BSE. In the past five trading sessions, the stock has zoomed by 3.3%, compared to a 2.44% decline in Vedanta stock.

Hindustan Zinc Q3 Results:

HZL said, the meeting of the Board of Directors of the Company will be held on Tuesday, January 28, 2025, inter‐alia to consider the unaudited Consolidated and Standalone Financial Results of the Company for the third quarter and nine months ended December 31, 2024.

During Q2FY25, HZL bagged a consolidated net profit of Rs 2,327 crore, up by 35% YoY. Consolidated revenue from operations surged by 21% YoY to Rs 6,619 crore.

In Q3FY25, Antique Stock Broking said, “We forecast a revenue of INR 79.5 bn, 8.8% higher YoY but a 3.5% QoQ decline (impacted by sequentially lower lead and silver
production) and EBITDA to rise by 25% YoY to INR 44.1 bn aided by higher metal prices. PAT is likely to grow 26.5% YoY to approx. INR 25.8 bn.”

Meanwhile, Kotak Institutional Equities said, “We expect zinc sales to increase yoy by 0.5% and lead/silver sales to decrease yoy by 1.8%/19% for the quarter.” It added, “We estimate EBITDA to increase 26% yoy (+7.3% QoQ) primarily led by higher zinc/silver prices.”

BUY/SELL Hindustan Zinc?

Kotak recommends selling HZL shares for a target price of Rs 380. Also, as per Trendlyne data, the consensus recommendation from 12 analysts for Hindustan Zinc Ltd. is SELL. However, EPS is expected to grow by 34.8% in FY25. The average 1-year target on HZL is Rs 419.33 apiece, hinting at nearly 12% potential downside. However, these targets or recommendations have the probability of modify after HZL’s Q3 performance.

About Hindustan Zinc:

Hindustan Zinc is India’s largest and the world’s second-largest integrated zinc producer. With more than 50 years of operational experience, the company gives the highest priority to the safety of our people and the conservation of scarce natural resources through technology and innovation. With a total R&R base of 456.3 million tonnes and an average zinc-lead grade of 6.8%, HZL’s mine life is over 25 years. Also, its fully integrated zinc operations currently hold around 75% market share in India’s primary zinc industry. The company is the 3rd largest silver producer globally with an annual capacity of 800 MT.

Hindustan Zinc’s operations comprise lead-zinc mines, hydrometallurgical zinc smelters, lead smelters, pyro metallurgical lead-zinc smelters as well as sulphuric acid and captive power plants in northwest India. The total metal production capacity is 1.123 Mt.