Hindustan Zinc Limited

Basic Materials — Other Industrial Metals & Mining · NSE

₹540.00+₹9.00 (+1.69%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

No individual risk factor stands out on this snapshot.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

The 60-second version of Hindustan Zinc Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Hindustan Zinc Limited explores for, extracts, and processes minerals in India, rest of Asia, and internationally. The company operates through two segments, Zinc, Lead, Silver & Others; and Wind Energy.

IndustryOther Industrial Metals & Mining

SectorBasic Materials

Employees3,303

Annual revenue₹39,192 Cr

How does it make money?

Turns over ₹39,192 Cr a year. Of every ₹100 of sales, about ₹35 reaches shareholders as profit, with ₹59 left at the operating level before interest, tax and depreciation. Each of its 3,303 employees supports ₹11.87 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹11.87 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDALCO INDUSTRIES LTD, VEDANTA LIMITED, TATA STEEL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 62.0%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 61.1% against a peer median of 12.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE12.0%

What is the outlook?

11 analysts covering the stock expect revenue to grow about 2.2% and earnings to grow about 0.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+2.2%

Est. earnings growth+0.2%

Analysts11

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +18% while net margin moved +12% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+18%

Margin effect+12%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 5.6% — barely ahead of inflation
• Profit CAGR of 9.6%

Quality vs. Valuation

Company Quality

71/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

70/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

13.4x

3Y Median

22.0x

40 monthly readings · mean 20.9x · range 11.7x–30.1x

Sector Median

12.3x

median of 3 sector peers

🟢Current valuation is approximately 39% below its 3y median of 22.0x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟡Against its sector it is priced broadly in line with the peer median of 12.3x.

vs. its own history

Cheap

22.0x median over 40 months · -39%

vs. sector peers

Fair

12.3x median of 3 peers · +9%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

10.3x

PEG

1.40

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 56.6% to 58.8% over 3 years.
Debt is being paid down
Total debt is down 28% over 3 years.
High return on capital employed
ROCE of 62.0% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 81.3% to 61.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 86.4% to 62.0% — often a sign of competition or overexpansion.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 62.0% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 56.6% to 58.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 28% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 39% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹11,733 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 5.6% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 81.3% to 61.1%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 57%✓ 58.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 5.6% CAGR
Latest reported year was 71.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹11,733 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 59%✓ 62.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

11 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

10 good · 0 neutral · 1 weak

Market Cap

₹2.28 L Cr

Large Cap

Large, widely-covered business — typically the steadiest of the bands

P/E (Trailing)

13.4x

Cheap

Cheap against the generic band

P/B Ratio

10.08x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹40.39

Profitable

Profitable on a per-share basis

ROE

61.1%

Strong

Strong capital efficiency

ROCE

62.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.39x

Low

Conservative leverage

Revenue Growth (YoY)

71.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

144.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

2.04%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹11,733 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

12.0x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

54.7%

Good

Healthy core-business profitability

Net Margin

38.1%

Good

Strong bottom-line conversion

Current Ratio

1.47

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.67

Defensive

Steadier than the market

52W Range Position

31%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

563.0 / 577.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

29.6

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹33,272 Cr	₹28,082 Cr	₹33,041 Cr	₹39,192 Cr	+5.6%
EBITDA	₹18,830 Cr	₹14,579 Cr	₹18,264 Cr	₹23,030 Cr	+6.9%
EBITDA Margin	56.6%	51.9%	55.3%	58.8%	—
PAT (Net Profit)	₹10,511 Cr	₹7,759 Cr	₹10,353 Cr	₹13,832 Cr	+9.6%
EPS	₹24.88	₹18.36	₹24.5	₹32.74	+9.6%
ROE	81.3%	51.1%	77.7%	61.1%	—
ROCE	86.4%	48.5%	62.4%	62.0%	—
Total Debt	₹12,188 Cr	₹9,121 Cr	₹11,536 Cr	₹8,833 Cr	-10.2%
Free Cash Flow	₹11,568 Cr	₹9,480 Cr	₹10,154 Cr	₹11,733 Cr	+0.5%

🟢 Revenue has grown at 5.6% a year over 3 years.

🟢 EBITDA has grown at 6.9% a year over 3 years.

🟢 EBITDA Margin has risen from 56.6% to 58.8% over 3 years (+2.2 pts).

🟢 PAT (Net Profit) has grown at 9.6% a year over 3 years.

🟢 EPS has grown at 9.6% a year over 3 years.

🔴 ROE has fallen from 81.3% to 61.1% over 3 years (-20.2 pts).

🔴 ROCE has fallen from 86.4% to 62.0% over 3 years (-24.5 pts).

🟢 Total Debt has shrunk at 10.2% a year over 3 years.

🟡 Free Cash Flow has been broadly flat over 3 years (0.5% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹42,370 Cr

Total Liabilities

₹19,741 Cr

Cash & Equivalents

₹297 Cr

Operating Cash Flow

₹17,008 Cr

Capex

-₹5,275 Cr

Shareholding (proxy)

Institutional Holding

5.7%

Insider Holding

88.6%

Corporate Actions

Next Earnings

19 Oct 2026

Dividend Rate

₹11

Ex-Dividend Date

30 Apr 2026

Analyst Consensus

Recommendations

9 Buy · 1 Hold · 4 Sell

Target Price (Mean)

₹645.93

+19.6% vs CMP

Target Range

₹480 – ₹770

Peer Comparison

Company	P/E	ROE
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%
TATA STEEL LIMITED	19.8x	10.8%

Recent News

2 positive3 mixed1 general

Hindustan Zinc Share Price Falls 2.47% Today | Analysis

Univest, 16 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Hindustan Zinc Q2 results 2026: Anil Agarwal-led Vedanta firm to report earnings next week - Preview, dividend history

Livemint, 17 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Hindustan Zinc, Nalco, Vedanta, SAIL, Hindustan Copper, To Hindalco: Why Are Metal Stocks Falling Today?

Goodreturns, 15 Oct

Why Hindustan Zinc Share Price is Falling

Equitymaster, 08 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Hindustan Zinc revenue rises 20% to ₹40,844 crore in FY26

scanx.trade, 16 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Hindustan Zinc shares jump 7% in two sessions. What’s triggering the rally?

The Economic Times, 21 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability · Valuation · Risk

MiddlingGrowth

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

All 5 tripwires holding · see Key things to watch ↑