Maintain 'hold' on Hind Zinc - TP Rs.126 - Geojit BNP Paribas Financial Services

- Company reported 1QFY13 EBITDA of Rs.1430 crore and recurring PAT of Rs.1480 crore due to higher other income and lower tax rate. Other income for 1QFY13 included MTM gains of Rs.120 crore, which is likely to be a non-recurring item.

- Mined metal production was flat yoy but declined 165 qoq. The company expects an improvement in production and grade in 2HFY13, with higher production and improvement in ore grades from Rampura Agucha mine and increase in production at the Sinesar Khurd mine.

- Operating costs increased qoq for the third straight quarter.

- Maintain 'hold' rating. With low volume growth and high operating costs, re-rating looks unlikely.

Source : Equity Bulls

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