Performance in line; cost of production declines further

Company
20 Jan 2024
5 Min read 
  • Hindustan Zinc's 3QFY24 revenue and EBITDA were in line with estimates.
  •  The decline in EBITDA was due to lower zinc sales volumes and lower zinc ASP.
  •  The cost of production (CoP) declined further and reached the lowest level in the last 10 quarters.
  •  APAT was higher than expected due to higher other income and lower tax outgo.
  •  The company maintained its volume and CoP guidance for FY24.
  •  The stock is currently trading at 6.7x FY26E EV/EBITDA, and all positives are priced in.
  •  The neutral rating on the stock is reiterated with a target price of INR310.
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