Hindustan Zinc (NSEI:HINDZINC) - Share price, News & Analysis

HINDZINC fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	3/6
Financial Health	6/6
Dividends	5/6

HINDZINC Stock Overview

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

Rewards

Trading at 35.7% below our estimate of its fair value

Risk Analysis

Earnings have declined by 2.6% per year over past 5 years

Unstable dividend track record

Hindustan Zinc Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Hindustan Zinc
Historical stock prices
Current Share Price	₹250.35
52 Week High	₹408.60
52 Week Low	₹245.25
Beta	0.74
1 Month Change	-15.25%
3 Month Change	-19.45%
1 Year Change	-25.50%
3 Year Change	2.35%
5 Year Change	-4.47%
Change since IPO	187.40%

Recent News & Updates

Jun 13

We Think Hindustan Zinc (NSE:HINDZINC) Can Manage Its Debt With Ease

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

May 26

If You Like EPS Growth Then Check Out Hindustan Zinc (NSE:HINDZINC) Before It's Too Late

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

May 08

Estimating The Fair Value Of Hindustan Zinc Limited (NSE:HINDZINC)

Does the May share price for Hindustan Zinc Limited ( NSE:HINDZINC ) reflect what it's really worth? Today, we will...

Shareholder Returns

	HINDZINC	IN Metals and Mining	IN Market
7D	-9.0%	-10.8%	-3.1%
1Y	-25.5%	-18.6%	-2.5%

Return vs Industry: HINDZINC underperformed the Indian Metals and Mining industry which returned -18.6% over the past year.

Return vs Market: HINDZINC underperformed the Indian Market which returned -2.5% over the past year.

Price Volatility

Is HINDZINC's price volatile compared to industry and market?
HINDZINC volatility
HINDZINC Average Weekly Movement	4.9%
Metals and Mining Industry Average Movement	7.6%
Market Average Movement	6.9%
10% most volatile stocks in IN Market	9.8%
10% least volatile stocks in IN Market	4.5%

Stable Share Price: HINDZINC is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: HINDZINC's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1966	19,100	Arun Misra	https://www.hzlindia.com

Hindustan Zinc Limited explores for, extracts, and processes minerals in India, Asia, and internationally. The company operates through Zinc, Lead, Silver & Others, and Wind Energy segments. It produces refined zinc and lead, and silver, as well as sulphuric acid.

Hindustan Zinc Fundamentals Summary

How do Hindustan Zinc's earnings and revenue compare to its market cap?
HINDZINC fundamental statistics
Market Cap	₹1.06t
Earnings (TTM)	₹96.29b
Revenue (TTM)	₹287.90b

11.0x

P/E Ratio

3.7x

P/S Ratio

Is HINDZINC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
HINDZINC income statement (TTM)
Revenue	₹287.90b
Cost of Revenue	₹58.41b
Gross Profit	₹229.49b
Other Expenses	₹133.20b
Earnings	₹96.29b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	22.79
Gross Margin	79.71%
Net Profit Margin	33.45%
Debt/Equity Ratio	8.2%

How did HINDZINC perform over the long term?

See historical performance and comparison

Dividends

7.2%

Current Dividend Yield

79%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is HINDZINC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HINDZINC?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for HINDZINC. This is calculated by dividing HINDZINC's market cap by their current preferred multiple.
What is HINDZINC's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹1.06t

HINDZINC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	3x
Enterprise Value/EBITDA	5.4x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does HINDZINC's PE Ratio compare to its peers?

HINDZINC PE Ratio vs Peers

The above table shows the PE ratio for HINDZINC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	4.6x

Forward PE

Price-To-Earnings vs Peers: HINDZINC is expensive based on its Price-To-Earnings Ratio (11x) compared to the peer average (4.6x).

Price to Earnings Ratio vs Industry

How does HINDZINC's PE Ratio compare vs other companies in the Indian Metals and Mining Industry?

Price-To-Earnings vs Industry: HINDZINC is good value based on its Price-To-Earnings Ratio (11x) compared to the Indian Metals and Mining industry average (11.7x)

Price to Earnings Ratio vs Fair Ratio

What is HINDZINC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HINDZINC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate HINDZINC's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of HINDZINC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HINDZINC (₹250.35) is trading below our estimate of fair value (₹389.28)

Significantly Below Fair Value: HINDZINC is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

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

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-12.4%

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.

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Examine whether Hindustan Zinc is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
Hindustan Zinc competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Hindustan Zinc performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-2.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HINDZINC has high quality earnings.

Growing Profit Margin: HINDZINC's current net profit margins (33.4%) are lower than last year (36%).

Past Earnings Growth Analysis

Earnings Trend: HINDZINC's earnings have declined by 2.6% per year over the past 5 years.

Accelerating Growth: HINDZINC's earnings growth over the past year (20.7%) exceeds its 5-year average (-2.6% per year).

Earnings vs Industry: HINDZINC earnings growth over the past year (20.7%) underperformed the Metals and Mining industry 76.9%.

Return on Equity

High ROE: HINDZINC's Return on Equity (28.1%) is considered high.

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Financial Health

How is Hindustan Zinc's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: HINDZINC's short term assets (₹239.8B) exceed its short term liabilities (₹60.9B).

Long Term Liabilities: HINDZINC's short term assets (₹239.8B) exceed its long term liabilities (₹43.0B).

Debt to Equity History and Analysis

Debt Level: HINDZINC has more cash than its total debt.

Reducing Debt: HINDZINC's debt to equity ratio has reduced from 25.7% to 8.2% over the past 5 years.

Debt Coverage: HINDZINC's debt is well covered by operating cash flow (449.6%).

Interest Coverage: HINDZINC's interest payments on its debt are well covered by EBIT (45.9x coverage).

Balance Sheet

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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

7.20%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: HINDZINC's dividend (7.2%) is higher than the bottom 25% of dividend payers in the Indian market (0.44%).

High Dividend: HINDZINC's dividend (7.2%) is in the top 25% of dividend payers in the Indian market (1.92%)

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (79%), HINDZINC's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (78.5%), HINDZINC's dividend payments are covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure

CEO

Arun Misra (55 yo)

1.83yrs

Tenure

₹25,488,122

Compensation

Mr. Arun Misra has been Chief Executive Officer and Whole time Director of Hindustan Zinc Limited since August 1, 2020. He was the Deputy Chief Executive Officer of Hindustan Zinc Limited and is with it si...

CEO Compensation Analysis

Compensation vs Market: Arun's total compensation ($USD325.83K) is below average for companies of similar size in the Indian market ($USD1.25M).

Compensation vs Earnings: Insufficient data to compare Arun's compensation with company performance.

Leadership Team

Experienced Management: HINDZINC's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.

Board Members

Experienced Board: HINDZINC's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/23 00:00
End of Day Share Price	2022/06/23 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31