Hindustan Zinc (HINDZINC)
CyclicalFairStock Score: 71/100 — STEADY
Score breakdown: P/E: 1/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 1/1
Key Financials
| Current Price | ₹561.9 |
| Market Cap | ₹2,37,420.68 Cr |
| P/E Ratio | 13.91 |
| ROCE | 60.73% |
| ROE | 86.16% |
| Dividend Yield | 3.63% |
| Profit Growth | 146.14% |
| Debt/Equity | 0.39 |
| Sales Growth | 74.92% |
| Free Cash Flow | ₹11,454 Cr |
| Promoter Holding | 60.71% |
| 52-Week Range | ₹453.5 — ₹733 |
| Sector | Non - Ferrous Metals |
| Book Value | ₹53.56 |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
As a value investor, I look for quality at a reasonable price. Hindustan Zinc has extraordinary quality: an ROE of 86.16% and ROCE of 60.73% tell me this is a low-cost, integrated zinc franchise with a genuine moat. The latest quarter's sales of ₹10,922 Cr and net profit of ₹3,879 Cr, together with free cash flow of ₹11,454 Cr, show impressive earning power. The 4.80% dividend yield is well-supported. Promoter holding of 60.71% further aligns ownership with minority holders. But Graham taught me that no asset is worth any price. At ₹592.10, I am paying 21.86 times earnings and 18.26 times book value. The Graham Number for protection is only ₹142.75, leaving me a margin of safety of -322.97%. Even the DCF intrinsic value of ₹1,451.22 suggests a comfortable upside, but I remain wary of the 71.56 EV/EBITDA multiple and the 1.93 PEG ratio. The market has already priced in substantial growth. The balance sheet is not pristine: debt/equity of 0.82 and a current ratio of 0.43 are far from conservative for a cyclical commodity producer. While free cash flow covers near-term obligations, a downturn in zinc could squeeze liquidity. The Altman Z-Score of 9.96 provides some comfort, but it cannot replace liquidity discipline. Growth is attractive—sales up 11.81% and profit up 25.71%—yet the five-year revenue CAGR of 8.54% is more moderate. This is a steady compounder, not a runaway growth story. If zinc prices retreat, expectations will unwind. My verdict: a wonderful business with strong returns and cash flow, but selling at a demanding multiple. I would wait for a lower price, closer to the 52-week low of ₹418, or for the balance sheet to strengthen. Patience is the value investor's best friend.
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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer