Please refer to important disclosures at the end of this report
1
Hindustan Zinc, the world’s second-biggest zinc producer, operates the world’s
third largest open-pit mine, and world’s largest Zinc Mine in Rampura Agucha,
Rajasthan. Some global manufacturer of ZINC has aggressively reduced
production such as Glencore to defer around 500,000 tons per year of mining
capacity (equivalent to around four per cent of global supply). Along with suppl
y
constraints, demand prospects too brightened as a Global automotive market is
a large component of demand for zinc and numbers show the industry remains
robust. Overall, output cuts and anticipation of a higher deficit in 2016 place the
grayish white metal in a win-win situation. The company is virtually debt free and
has hefty cash balance. Despite HZL is in cyclical business it has reported
consistent higher RoE. Hence Buy
BUY
CMP `230
Stock Info
Sector
Beta 0.9
Bloomberg Code HZ IN
Shareholding Pattern (%)
Promoters 64.9
MF / Banks / Indian Fls 32.4
Indian Public / Others 2.7
Abs. (%) 3m 1yr 3yr
Sensex 6.3 8.1 53.2
Hind. Zinc 35.7 76.6 85.5
Nifty 8,943
Reuters Code HZNC.NS
Face Value (
`
)2
BSE Sensex 28,978
52 Week High / Low 233/128
Avg. Daily Volume 1,37,877
Market Cap (
`
cr) 97,203
Zinc
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Hindustan Zinc
Others | Metals
September 7, 2016
Hindustan Zinc | Metals
September 7, 2016
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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