India’s largest integrated mining powerhouse, commanding 75% of the primary zinc market and holding positions as the world’s second-largest zinc producer and third-largest silver producer, has posted impressive growth with revenue surging 21.5% YoY to Rs. 8,252 crores in Q2 FY25, backed by robust operational performance and sustainability initiatives.
Stock Movement
After announcing its quarterly results, Hindustan Zinc Limited’s share since has surged almost to 13%. The stock opened at ₹555 and is currently trading at ₹561.55. The market capitalisation now stands at approximately ₹2,37,000 crore.
Q2 FY25 Result Walkthrough
Coming into the financial analysis of Hindustan Zinc, the company’s consolidated revenue (sales) increased remarkably by 21.5 percent YOY, from Rs. 6,791 crores in Q2 FY24 to Rs. 8,252 crores in Q2 FY25, and showed a modest growth of 1.5 percent QoQ from Rs. 8,130 crores in Q1 FY25. This indicates a strong recovery in the company’s core business operations.
The company’s operating profit witnessed a substantial improvement, reaching Rs. 4,123 crores in Q2 FY25, with an operating profit margin (OPM) of 50 percent, showing a significant enhancement from 46 percent in Q2 FY24.
In Q2 FY25, Hindustan Zinc’s consolidated net profit showed a remarkable growth of 34.6 percent YOY, reaching Rs. 2,327 crores compared to Rs. 1,729 crores during the same period last year. As compared to Q1 FY25, the net profit has marginally decreased by 0.77 percent from Rs. 2,345 crores, indicating some quarterly volatility in bottom-line performance.
The basic earnings per share (EPS) increased by 34.7 percent YOY and stood at Rs. 5.51 as against Rs. 4.09 recorded in Q2 FY24.
Target Price
Ventura has maintained a Buy rating on the Hindustan Zinc products and increased the target price to Rs. 680 an upside of 32%. According to Ventura market leadership in zinc and silver production, low-cost structure, and strong ESG credentials are the rationale for this upgrade.
Also read…
About Company
Hindustan Zinc Limited (HZL) stands as India’s largest and only integrated producer of zinc, lead, and silver, embodying excellence in mining and metal production. The company operates with a comprehensive mine-to-market business model, controlling its entire production chain from mining and smelting to metal production.
As the world’s second-largest integrated zinc producer, HZL is renowned for maintaining the lowest cost structure globally, which gives it a significant competitive advantage. The company’s operations span across multiple state-of-the-art mining locations and smelting facilities, equipped with cutting-edge technology and automation systems.
The company operates through three main business segments: zinc, lead, and silver production. The zinc division forms the core of its operations, serving various industries including steel galvanizing, die-casting, alloys, and oxide production. The lead segment caters primarily to battery manufacturers and other industrial applications, while the silver segment has emerged as a significant revenue generator, serving both industrial uses and the jewelry sector.
HZL has also diversified into renewable energy, maintaining wind power projects and solar energy installations, demonstrating its commitment to sustainable operations and green energy initiatives. This diversification strategy helps in mitigating commodity price fluctuations while ensuring sustainable growth across segments.
Written By Fazal Ul Vahab C H
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
Start Your Stock Market Journey Today!
Want to learn Stock Market trading and Investing? Make sure to check out exclusive Stock Market courses by FinGrad, the learning initiative by Trade Brains. You can enroll in FREE courses and webinars available on FinGrad today and get ahead in your trading career. Join now!!
