Hindustan Zinc - 3QFY17 Result Update - Higher Zinc Prices Aid Earnings, but Valuation Expensive; Reiterate REDUCE - Reliance Securities

Continuing to remain positive on LME Zinc prices led by likely mining deficit and closure of smelters, we increase our zinc price assumptions for FY17E & FY18E, resulting in an upward revision of our earnings estimates for HZL. Further, we continue to maintain our positive stance on the back of strong fundamentals of zinc vis-a-vis other base metals and HZL's quality assets. However, as the valuation seems expensive at current level we reiterate our REDUCE recommendation on the stock with a revised Target Price of Rs285 (valuing the stock at 7x FY18E EBITDA).

Shares of HINDUSTAN ZINC LTD. was last trading in BSE at Rs.302.3 as compared to the previous close of Rs. 293.15. The total number of shares traded during the day was 163747 in over 2259 trades.

The stock hit an intraday high of Rs. 303.25 and intraday low of 291.1. The net turnover during the day was Rs. 48791085.

Source : Equity Bulls

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