The stock, after a recent run-up, is fairly priced in our view (FY18/19 EV/ EBITDA of 10.1/8.6. Downgrade to NEU with an unchanged TP of Rs 340 (8x Sep-2019 EV/EBITDA). Hindustan Zinc Ltds (HZL) numbers came in marginally lower than estimates (EBITDA: Rs 30.2bn, 45.6/26.8% YoY/QoQ, est Rs 31.1bn). The improvement in EBITDA is driven by higher zinc prices (31.4/14.1% YoY/QoQ), partially offset by higher Zn cost of production (USD984/t, 21.6/1.1% YoY/QoQ). Silver (146T, 35.2/27.0% YoY/QoQ) also contributed significantly to the jump (18% of PBIT in 2QFY18).