Motilal Oswal's research report on Hindustan Zinc
Hindustan Zinc (HZ)’s revenue at INR85.5b (+4% YoY/+10% QoQ) remained largely in line with our est. of INR81b. The growth was driven by better commodity prices, offset by lower volumes. EBITDA was also in line at INR44.5b (+7% YoY/+15% QoQ) during the quarter. EBITDA margin stood at 52% in 2QFY26 vs. 49.7% in 1QFY26 and 50% in 2QFY25. The improvement was primarily on account of favorable metal prices and lower cost of production.
Outlook
At CMP, HZ trades at 8.8x FY27E EV/EBITDA, and we believe the current valuation prices in all the positive factors. We reiterate our Neutral rating with a TP of INR510 (premised on 8.5x EV/EBITDA on Sep’27 estimates).
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