BSE:500188

Stock Analysis Report

Executive Summary

Hindustan Zinc Limited explores for, extracts, and processes minerals in India and internationally.


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has Hindustan Zinc's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500188 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.9%

500188

-1.9%

IN Metals and Mining

-0.6%

IN Market


1 Year Return

-19.2%

500188

-4.3%

IN Metals and Mining

7.1%

IN Market

Return vs Industry: 500188 underperformed the Indian Metals and Mining industry which returned -6.5% over the past year.

Return vs Market: 500188 underperformed the Indian Market which returned 6.7% over the past year.


Shareholder returns

500188IndustryMarket
7 Day-2.9%-1.9%-0.6%
30 Day-1.0%5.8%1.6%
90 Day-1.0%16.7%5.1%
1 Year-19.2%-19.2%-2.8%-4.3%9.1%7.1%
3 Year-16.4%-30.6%-0.2%-11.5%31.1%24.2%
5 Year77.6%22.9%32.3%10.9%33.8%21.8%

Price Volatility Vs. Market

How volatile is Hindustan Zinc's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hindustan Zinc undervalued compared to its fair value and its price relative to the market?

11.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500188 (₹215.9) is trading above our estimate of fair value (₹121.48)

Significantly Below Fair Value: 500188 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 500188 is poor value based on its PE Ratio (11.3x) compared to the Metals and Mining industry average (10.2x).

PE vs Market: 500188 is good value based on its PE Ratio (11.3x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 500188's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 500188 is overvalued based on its PB Ratio (2.4x) compared to the IN Metals and Mining industry average (0.9x).


Next Steps

Future Growth

How is Hindustan Zinc forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.9%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Hindustan Zinc has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Hindustan Zinc performed over the past 5 years?

0.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500188 has a high level of non-cash earnings.

Growing Profit Margin: 500188's current net profit margins (38.2%) are lower than last year (38.6%).


Past Earnings Growth Analysis

Earnings Trend: 500188's earnings have grown by 1.7% per year over the past 5 years.

Accelerating Growth: 500188's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 500188 had negative earnings growth (-5.5%) over the past year, making it difficult to compare to the Metals and Mining industry average (1.7%).


Return on Equity

High ROE: 500188's Return on Equity (20%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hindustan Zinc's financial position?


Financial Position Analysis

Short Term Liabilities: 500188's short term assets (₹217.9B) exceed its short term liabilities (₹44.7B).

Long Term Liabilities: 500188's short term assets (₹217.9B) exceed its long term liabilities (₹11.8B).


Debt to Equity History and Analysis

Debt Level: 500188 is debt free.

Reducing Debt: 500188 had no debt 5 years ago.

Debt Coverage: 500188 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 500188 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 500188 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 500188's debt is covered by short term assets.


Next Steps

Dividend

What is Hindustan Zinc's current dividend yield, its reliability and sustainability?

3.82%

Current Dividend Yield


Dividend Yield vs Market

company3.8%marketbottom25%0.6%markettop25%2.3%industryaverage3.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 500188's dividend (3.71%) is higher than the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: 500188's dividend (3.71%) is in the top 25% of dividend payers in the Indian market (2.31%)


Stability and Growth of Payments

Stable Dividend: 500188's dividend payments have been volatile in the past 10 years.

Growing Dividend: 500188's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: Unable to calculate sustainability of dividends as 500188 has not reported any payouts.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Hindustan Zinc's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Sunil Duggal (57yo)

4.3yrs

Tenure

₹81,967,949

Compensation

Mr. Sunil Duggal is Chief Executive Officer of HZL at Vedanta Resources Limited (formerly known as Vedanta Resources PLC) since October 2015 and served as its Chief Executive Officer of Zinc India since Oc ...


CEO Compensation Analysis

Compensation vs Market: Sunil's total compensation ($USD1.16M) is about average for companies of similar size in the Indian market ($USD1.12M).

Compensation vs Earnings: Sunil's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

1.0yrs

Average Tenure

57yo

Average Age

Experienced Management: 500188's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

4.3yrs

Average Tenure

59.5yo

Average Age

Experienced Board: 500188's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Sunil Duggal (57yo)

    CEO & Whole-time Director

    • Tenure: 4.3yrs
    • Compensation: ₹81.97m
  • Preeti Dubey

    Head of Investor Relations

    • Rajendra Pandwal

      Compliance Officer & Company Secretary

      • Compensation: ₹11.15m
    • Amitabh Gupta (57yo)

      Director of Commercial & CEO of Fertilizer

      • Compensation: ₹48.80m
    • Laxman Shekhawat (51yo)

      Director of Operations

      • Ramakrishnan Kasinathan

        Chief Commercial Officer

        • Barun Gorain

          Chief Technology & Information Officer

          • Swayam Saurabh

            Acting Chief Financial Officer

            • Tenure: 1yrs
            • Compensation: ₹16.14m
          • Kavita Singh

            Chief People Officer

            • Harsha Shetty

              Chief Marketing Officer

              • Tenure: 0.9yrs

            Board Members

            • Navin Agarwal (58yo)

              Director

              • Tenure: 17.8yrs
              • Compensation: ₹1.70m
            • Arun Todarwal (62yo)

              Independent Director

              • Tenure: 4.8yrs
              • Compensation: ₹1.93m
            • Alampallam Narayanaswamy (68yo)

              Independent Director

              • Tenure: 10.8yrs
              • Compensation: ₹2.05m
            • Sunil Duggal (57yo)

              CEO & Whole-time Director

              • Tenure: 4.3yrs
              • Compensation: ₹81.97m
            • Reena Puri (55yo)

              Director

              • Tenure: 3.1yrs
            • Farida Naik

              Director

              • Tenure: 2.8yrs
            • Kiran Agarwal (61yo)

              Chairman

              • Tenure: 0.8yrs
              • Compensation: ₹205.48k

            Company Information

            Hindustan Zinc Limited's company bio, employee growth, exchange listings and data sources


            Key Information

            • Name: Hindustan Zinc Limited
            • Ticker: 500188
            • Exchange: BSE
            • Founded: 1966
            • Industry: Diversified Metals and Mining
            • Sector: Materials
            • Market Cap: ₹897.035b
            • Shares outstanding: 4.23b
            • Website: https://www.hzlindia.com

            Number of Employees


            Location

            • Hindustan Zinc Limited
            • Yashad Bhawan
            • Udaipur
            • Rajasthan
            • 313004
            • India

            Listings

            TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
            500188BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2001
            HINDZINCNSEI (National Stock Exchange of India)YesEquity SharesININRJan 2001

            Biography

            Hindustan Zinc Limited explores for, extracts, and processes minerals in India and internationally. The company operates through Zinc, Lead; Silver; and Wind Energy segments. It produces refined zinc and lead, and silver, as well as sulphuric acid. The company also operates thermal captive power plants with a total power generation capacity of 474 megawatts; wind power plants with a capacity of 273.5 megawatts; solar power plants with a capacity of 16 megawatts; and waste heat power plants with a capacity of 35.4 megawatts. Hindustan Zinc Limited was incorporated in 1966 and is based in Udaipur, India. Hindustan Zinc Limited is a subsidiary of Vedanta Limited. 


            Company Analysis and Financial Data Status

            All financial data provided by Standard & Poor's Capital IQ.
            DataLast Updated (UTC time)
            Company Analysis2020/01/22 12:41
            End of Day Share Price2020/01/22 00:00
            Earnings2019/12/31
            Annual Earnings2019/03/31


            Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.