India Infoline has maintained its 'Market Performer' rating on Hindustan Zinc on better than expected fourth quarter revenue growth. The brokerage has raised its price target for the stock to Rs 155, citing higher volume growth over the next two years and increase in zinc and lead prices.
Volume growth has been lowered due to delay in the commissioning of the lead smelter at Daribsa but this lowering (of volume growth) will be offset by an increase in estimate of zinc and lead prices, India Infoline said in their note Monday.
"Even with our metal price assumptions, which are lower than the prevailing prices, we expect Hindustan Zinc to witness compounded annual rate of growth (CAGR) of 16.1% in earning over FY10-13E," the brokerage said.
India Infoline has forecast Hindustan Zinc FY12 earning per share at Rs 13.3 and FY13 EPS at Rs 15.5.
At 12:35 hrs, shares of Hindustan Zinc was at Rs 149.80, down 1.41% on the Bombay Stock Exchange.
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