Hindustan Zinc - Q4FY2013 Result Update - Nirmal Bang

- Hindustan Zinc 4QFY13 performance was in line with expectations, with EBITDA and PAT being 1% below and 3% above our estimates, respectively.

- However, EBITDA/PAT were 16%/19% above street estimates, respectively, driven by higher zinc concentrate sales. Mined metal output growth was robust at 17% YoY and 11% QoQ at 260,000tn.

- HZL has given guidance of 1mt of mined metal production for FY14. Although reserves and resources (R&R) addition remained robust at 24.6mt of gross addition versus depletion of 8.6mt in FY13, the grade deterioration is a worrisome factor.

- We have retained our Buy rating on the stock keeping the TP unchanged at Rs144. We may review our earnings estimates after the conference call scheduled Today

Source : Equity Bulls

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