February 16, 2017 / 15:17 IST
The company reported a gross operating income of Rs 5384.0 crore. After adjusting for excise duty, net operating income for the quarter was at Rs 4979.9 crore (up 45.2% YoY, 41.2% QoQ, marginally higher than our estimate of Rs 4852.8 crore). Zinc sales volume for the quarter were at 211000 tonnes (up 3.4% YoY, 42.6% QoQ, higher than our estimate of 200000 tonnes).
Outlook
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HZL broadly reported an in line performance for Q3FY17. On the back of the recent strength witnessed in zinc prices, we have upward revised LME zinc estimates to US$2300/tonne for FY17E (from US$2250/tonne earlier) and to US$2750/tonne for FY18E (from US$2400/tonne earlier). We value the stock at 7x FY18E EV/EBITDA and arrive at a target price of Rs 300. We have maintained HOLD rating on the stock.
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