Hindustan Zinc (HINDZINC)
CYCLICALFairStock Score: 77/100 — STEADY
Score breakdown: P/E: 1/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 1/1
Key Financials
| Current Price | ₹592.1 |
| Market Cap | ₹2,55,124.76 Cr |
| P/E Ratio | 21.86 |
| ROCE | 60.73% |
| ROE | 86.16% |
| Dividend Yield | 4.8% |
| Profit Growth | 25.71% |
| Debt/Equity | 0.82 |
| Sales Growth | 11.81% |
| Free Cash Flow | ₹11,45,400 Cr |
| Promoter Holding | 60.71% |
| 52-Week Range | ₹413.5 — ₹733 |
| Sector | Non - Ferrous Metals |
| Book Value | ₹32.42 |
Strengths
- Exceptional ROCE of 60.7% showing highly efficient capital utilization
- Strong growth momentum with 45.8% profit growth and 27.6% sales growth
- Attractive dividend yield of 4.8% providing steady income to investors
Concerns
- Cyclical nature makes earnings vulnerable to commodity price volatility
- High dependence on zinc prices which are influenced by global economic conditions
- Moderate DhanIQ score of 6/10 suggests limited upside potential at current levels
AI Analysis
Hindustan Zinc is a Cyclical company — meaning its performance moves with economic cycles and commodity price swings. Trading at Rs 603.8 with a market cap of Rs 2.6 lakh crores, the company shows strong operational metrics that first-time investors should understand. The data indicates impressive profit growth of 45.8% and sales growth of 27.6%, reflecting robust demand for zinc in recent quarters. What stands out is the exceptional ROCE of 60.7% — this means the company generates over 60 rupees for every 100 rupees of capital employed, indicating highly efficient operations. The P/E ratio of 21.9 appears reasonable given the growth trajectory. Analysis suggests the company is benefiting from favorable zinc prices and strong industrial demand. The dividend yield of 4.8% provides steady income while investors wait for capital appreciation. However, the DhanIQ Score of 6/10 labeled as 'STEADY' indicates moderate investment attractiveness. For cyclical companies like this, timing matters significantly. Investors may consider that zinc demand is closely tied to infrastructure development, automotive production, and construction activity. The company's strong operational leverage means profits can amplify during favorable cycles, but the reverse is also true during downturns.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer