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Last Updated : Jan 21, 2020 10:46 AM IST | Source: Moneycontrol.com

Hindustan Zinc share price fell over 2% after Q3 show; here's what brokerages say

Global financial firm Citi gave a neutral rating on the stock after the December quarter numbers, with a target price at Rs 210.

 
 
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Shares of Hindustan Zinc fell over 2 percent on BSE in morning trade on January 21, a day after the company posted a 26.7 percent decline in net profit at Rs 1,620 crore for the December 2019 quarter.

Net profit in the year-ago period was Rs 2,211 crore, the company said in a BSE filing.

Total income during October-December dropped to Rs 5,117 crore as compared to Rs 6,090 crore in the year-ago quarter, the filing said.

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Read more: Hindustan Zinc Q3 net profit drops 27% to Rs 1,620cr

Global financial firm Citi gave a neutral rating on the stock after the December quarter numbers, with a target price at Rs 210.

"Downtrend in zinc prices should push the stock down. The downtrend in prices should be offset in part by strong dividend yield," Citi said.

IDFC Securities, too, has a neutral call with a target price at Rs 212 on Hindustan Zinc.

"The company is expected to achieve a 17 percent YoY growth in EBITDA in FY21. Project expansions should complete by Q4 end," IDFC Securities said.

"We expect zinc prices to hover around current levels and reduce zinc price assumption by $100/t to $2,450/t for FY20. We continue to expect a dividend of Rs 13 in FY20," said IDFC Securities.

The brokerage firm sees divestment of government stake as an upside risk for the stock.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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First Published on Jan 21, 2020 10:46 am
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