We remain constructive, except for valuations (9.2/7.7x FY18/19 EBITDA). Maintain NEU with a TP of Rs 270 (7x June-2019 EV/EBITDA). Hindustan Zinc Ltds (HZL) numbers came in marginally lower than estimates (EBITDA: Rs 23.8bn, 2.1x YoY, -36.0% QoQ, est Rs 25.3bn). Zinc cost of production increased to USD973/t (vs run-rate of USD800), led by higher coal prices driving the miss. HZL changed its depreciation policy to WDV, and the resulting lower depreciation drove the earnings beat (Rs 18.7bn, 80.8% YoY, 381% QoQ).