Hindustan Zinc shares climbed 1.1% in early trade, trading at Rs 537.80. The stock had closed slightly higher at Rs 531.95 on Friday before the earnings announcement. Despite a 12.8% year‑to‑date decline, the miner remains a major player with a market cap of over Rs 2.25 lakh crore.
The company posted a strong first‑quarter 2024 result, with net profit jumping to Rs 5,469 crore, beating the market estimate of Rs 5,059 crore. Revenue surged 77% to Rs 13,747 crore, while EBITDA more than doubled to Rs 8,050 crore, giving an EBITDA margin of 58.56% compared with 49.7% a year earlier.
HSBC kept its Buy rating and set a target price of Rs 770, citing the recent rise in London Metal Exchange zinc prices and stronger sulphuric acid demand. The bank expects the favourable pricing environment to support earnings in the near term and has lifted its FY27‑29 EBITDA estimates by 4.1‑7.8%.
HSBC also warned of potential risks, such as weaker silver and zinc prices, lower mine grades, higher royalty payments after lease expiries, and related‑party transactions that could hurt minority shareholders.
Jefferies maintained a Buy view but lowered its target price to Rs 660 from Rs 700. It highlighted the company’s 4% sequential rise in EBITDA and a 6% beat on estimates, and raised FY27‑28 earnings‑per‑share forecasts by 4‑6%. The broker noted that the stock trades at 7.5× FY27 enterprise value‑to‑EBITDA, below its long‑term average of 7.8×, indicating a reasonable valuation.
Overall, the positive earnings surprise and supportive commodity prices have buoyed investor sentiment, keeping Hindustan Zinc on an upward trajectory despite broader market softness.