Arihant Capital's research report on Hindustan ZincFor the quarter Q1 FY 17, Hindustan Zinc’s (HZL) reported a drastic drop of 47% in profits which stood at Rs 1,037 crs. Revenue for the quarter dropped down by 30% YoY. Silver production was higher by 20% due to lower production as per plan with second half to be substantially stronger. Mined metal production of 127kt as per mine plan, second half is expected to be substantially stronger. Integrated zinc and lead production down by 46% and 11% respectively compared to Q1FY16. Integrated silver production was up by 20% compared to Q1FY16.We have valued stock on EV/EBITDA of 12 (x) its FY17E EBITDA and have arrived at fair value of Rs 212 per share. At CMP of Rs 194 the stock is trading at FY17EEV/EBITDA of 11 (x). We recommend HOLD rating on the stockFor all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies 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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