Sell Hindustan Zinc, target of Rs 270: Reliance Money

Reliance Money has maintained its sell rating on Hindustan Zinc with a target of Rs 270 in its January 23, 2009 research report. "Hindustan Zinc posted sales of Rs.10.7 billion down 36% (YoY), EBIDTA of Rs 2.8 billion dropped by 32%, Net profit of Rs.3.7 billion at a YoY fall of 53%. The stock has corrected considerably due to uncertainty involving the GDP growth in present context- Steel industry being directly related to the latter and the Zinc industry being correlated to the Steel industry as 47% of the Zinc produced is used for galvanizing. We reiterate a Sell with a revised price target of Rs 270 which discounts the FY10E earnings by a multiple of 9x," says Reliance Money's research report.

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