Vedanta group firm Hindustan Zinc Ltd (HZL) shares gained in the morning session on January 29, after the metals player reported a 32 percent year-on-year rise in its net profit for the quarter ended December 31, 2024.
Hindustan Zinc posted a 32 percent on-year rise in its third fourth quarter net profit at Rs 2,678 crore, helped by higher prices of zinc, silver and lead and a stronger dollar. It reported a net profit of Rs 2,028 crore in the same quarter last year.
Third quarter consolidated revenue from operations was at Rs 8,315 crore up from Rs 7,067 crore in the same quarter last year. Earnings before interest, taxes, depreciation and ammoritisaton (EBITDA) stood at Rs 4,539 crores, up 28 percent YOY, the company said in an exchange filing on January 28.
At 9.18 am, shares of the zinc player were quoting Rs 443, higher by 2.6 percent on the NSE.
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The growth this quarter was largely on account of higher zinc and silver prices and a strong dollar, marginally offset by lower metal volumes.
The cost of production for zinc improved to Rs 87,960 per tonne, down 5 percent on-year. The improvement was led by higher metal grades and better domestic coal availability with lower costs, which were further supported by increased renewable energy and higher acid realizations, noted brokerage Motilal Oswal.
"The company continues to focus on improving production with tight cost control. We retain
our earnings estimates and expect Hindustan Zinc to maintain its focus on profitability," said Motilal Oswal, maintaining its 'neutral' call, with a price target of Rs 460 per share.
On the other hand, while Nuvama Institutional Equities raised its target price on the firm Rs 411 from Rs 350 earlier, the brokerage kept its 'reduce' rating intact and suggested that investors await further correction to enter the stock.
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