Hindustan Zinc Ltd. share price target

HZL has a huge reserve base, which provides strong earnings visibility. During the year, total ore reserves increased from 114.7 million tonnes (MT) at the end of FY20 to 150.3 MT at the end of FY21 while mineral resources totalled 297.6 MT. Total R&R; increased to 448 MT as HZL replenished more than it consumed during the year. Total contained metal in ore reserves is 9.16 MT of zinc, 2.55 MT of lead and 295.5 million ounces of silver. The mineral resources contains 14.9 MT of zinc, 6.3 MT of lead and 618.7 million ounces of silver. At current mining rates, the R&R; underpins metal...

Growing demand, recovery in prices and cost optimization should drive company's growth further. We maintain our rating to HOLD on the stock with a rolled forward target price of Rs. 301 based on 12x FY23E PE. Higher volumes led healthy revenues In Q3FY21, company's revenue grew 27.9% YoY (+6.9%QoQ) to Rs. 5,915cr, largely driven by higher metal volumes and prices. Zinc revenue rose 21.4%YoY to Rs. 4,744cr (+11.6% QoQ) supported by higher Zinc (+6% YoY) and lead volume (+30% YoY), owing to gradual recovery in China as manufacturing activities coming back to...

HZL has a huge reserve base, which provides strong earnings visibility. During the year, total ore reserves increased from 92.6 million tonnes (MT) at the end of FY19 to 114.7 MT at the end of FY20, while mineral resources totalled 288.3 MT. Total R&R; was unchanged at 403 MT from a year ago as ore consumed during the year was replenished. Total contained metal in ore reserves was 7.95 MT of zinc, 2.07 MT of lead and 256.2 million ounces of silver. The mineral resources contain 15.87 MT of zinc, 5.93 MT of lead and 641.8 million ounces of silver. At current mining rates, the R&R; underpins...

Hindustan Zinc (HZ) reported EBITDA tad below our estimates by 3% due to lower volumes. While, earnings beat consensus estimates by 6%. HZ missed its guidance on volumes and ore grade over last 3-4 years due to weaker than assessed ore grade. Ore grade has fallen by ~30% in last 5 years due to lower grade of new mines and reduced share of Rampura Agucha (RA) mines. As the new shafts at both RA and Sindesar Khurd (SK) mines...

Hindustan Zinc (HZ)'s 3QFY21 results were strong, as expected, with EBITDA up 43% YoY on higher volumes and prices. While silver business remained strong with EBIT of INR10.1b (37% of total), zinc realized premiums recovered to pre-COVID levels as the share of domestic volumes improved in 3Q. As major projects near completion, we expect 9% CAGR in HZ volumes over FY21-23E, driving an 18% CAGR in EBITDA. However, we believe this growth is factored in the current valuation and hence we rate it Neutral....

Registered Office:Rukmini Towers, 3rd& 4th Floor, # 3/1, Platform Road, Sheshadripuram, Bangalore - 560 020,...

Registered Office:Rukmini Towers, 3rd& 4th Floor, # 3/1, Platform Road, Sheshadripuram, Bangalore - 560 020,...