Hindustan Zinc Ltd. share price target

Hindustan Zinc (HZL) reported a marginal (5.4%) beat on estimates (-45.8% YoY, -13.6% QoQ). Zn/Pb volumes were weak (mined metal 127kT, -45.3% YoY, 32.4% QoQ), as guided. Strong Zn prices, however, helped HZL offset weak volumes.

ICICI Securities Ltd | Retail Equity Research Hindustan Zinc (HZL) topline came in higher than our estimate on the back of better than expected sales volume. The topline for the quarter came in at | 2530.6 crore (down 30.3% YoY, however higher than our estimate of | 2318.8 crore). Zinc sales volume for the quarter came in at ~120000 tonnes (down 33.3% YoY and 24.1% QoQ, however higher than our estimate of ~103000 tonnes). Lead sales volumes came in at 23000 tonnes (down 20.7% YoY, 43.9% QoQ and lower...

8 Operating profit, adjusting for deferred mining expense, was marginally below our estimatesduetohigherminingcosts Higherotherincomewaspartlyoffsetbyhigherdepreciationandinterest,whichledto...

HZ's 1QFY17 EBITDA declined 42% YoY (and 14% QoQ) to INR11.3b due to weak mine production, a transitory phenomenon. However, it was higher than our estimate of INR6.7b, driven by (1) higher than expected zinc/silver volumes and realizations, and (2) deferral of INR1.9b in mining cost. Reported PAT of INR10.4b (down 49% YoY and 52% QoQ) included impact of INR1.7b in additional depreciation charge due to change in depreciation method from SLM to WDV. Impact of Ind-AS was primarily about...

Hindustan Zinc (HZL) reported weak EBITDA at Rs11.3bn down 32% yoy & 14% qoq marginally ahead of our estimate of Rs10.4bn. Decline in EBITDA can be attributed to fall in production of zinc (down 46% yoy & 34% qoq) and lead (down 19% yoy and 34% qoq) to 102,000 tonne & 25,000 tonne respectively mainly due to lower output from Rampura Agucha Mine. However, EBITDA was aided by higher silver volume (up 20% yoy). While mine transition from open cast to underground is progressing well, HZL has now guided of marginally higher mined metal production in FY17E on yoy basis. Though we have tweaked our estimates and see higher prices for zinc, we maintain our HOLD...

8 Mined metal production at 188K was 11% below estimates; concentrate inventory liquidationhelpedhigherrefinedmetalproduction(193K) 9 Ramp up of production at SK and Kayar mines led to higher volumes of lead (38KT,...

8 Mined metal production at 188K was 11% below estimates; concentrate inventory liquidationhelpedhigherrefinedmetalproduction(193K) 9 Ramp up of production at SK and Kayar mines led to higher volumes of lead (38KT,...

Hindustan Zinc (HZL) reported a marginal beat on estimates (revenue 2.9% vs. estimated EBITDA 2.6%) driven by higher premiums on Zn/Pb, offset by increase in M&M; expenses and overheads. The silver segment continued to deliver (32% of PBIT in 4QFY16, with ~87% EBIT margins) on account of higher volumes from Sindesar Khurd (SK; higher silver and lower Zn) vs. Rampura Agucha (RA; higher Zn).

Dismal quarter; LME prices take centre stage Hindustan Zinc Limited (HZL) reported weak EBITDA, which fell 35% yoy and 12% qoq to Rs13.1bn, marginally higher than our estimate of Rs 12.8bn. EBITDA decline was largely due to fall in zinc production which was down 29% yoy and 25% qoq to 154,000 tonnes due to lower output from Rampura Agucha Mine. EBITDA was aided by higher Lead volumes (up 6% yoy and 9% qoq) and silver volumes of 122 tonnes (up 65% yoy and 5% qoq). This was on account of change in mining mix due to increased contribution from SK (Sindesar Khurd) and Kayad mines, resulting in lower average grades. While...

Transitory decline in mine production; targets 1.2mt in 3 years HZL 4QFY16 EBITDA at INR13.1b (-34% YoY) was ahead of our estimate of INR12.2b on higher lead and silver production. Reported PAT of INR21.5b (+7% YoY) includes net...