 "Hindustan Zinc extends gain post Q3 results")
Hindustan Zinc has moved higher by 7% to Rs 170, extending its over 10% rally in past four trading sessions on the BSE, after the company reported a net profit of Rs 1,811 crore against an average analyst estimate of Rs 1,636 crore for the third quarter ended December 31, 2015 (Q3FY16).
The stock is currently quoting at its highest level last seen in July 2015. Post Q3 results the stock has rallied 22% from 139 on January 21, as compared to 2% gain in the S&P BSE Sensex.
Motilal Oswal Securities maintains ‘buy’ rating on the stock with a target price of Rs 171.
Hindustan Zinc has strong balance sheet with huge cash surplus of Rs 32,600 crore. Free cash flow (post capex) remains robust at around Rs 4,000 – Rs 5,000 crore.
The Supreme Court (SC) has recently barred the government from further divestment, thereby fading the hope of an eventual minority buyout. Vedanta, in dire need of cash, will be compelled to increase dividend payout to service its highly leveraged balance sheet, the broking firm said in a Q3 results update.
Angel Broking retain ‘Accumulate’ rating on the stock as broking firm expect capacity expansions to help the company offset the pressure from falling realizations.
“The Management expects total integrated silver production to be 375,000MT in FY2016. The Management also indicated that the expansion projects remain on track, which should help the company drive volumes. The Management had kept the capex guidance unchanged at around $200-$225 million, including sustenance capex”, Angel Broking said in a report.
Hindustan Zinc, the best play in the metals space, gets a facelift with the SC stating that a stake sale cannot take place without its permission, according to Religare Institutional Research. The broking firm maintains ‘Hold’ rating on the stock with a target price of Rs 175.
At 12:03 p.m. the stock was up 5.5% at Rs 167 as compared to 0.08% decline in S&P BSE Sensex. A combined 3.54 million shares changed hands on the counter on the BSE and NSE so far.
The stock is currently quoting at its highest level last seen in July 2015. Post Q3 results the stock has rallied 22% from 139 on January 21, as compared to 2% gain in the S&P BSE Sensex.
Motilal Oswal Securities maintains ‘buy’ rating on the stock with a target price of Rs 171.
Hindustan Zinc has strong balance sheet with huge cash surplus of Rs 32,600 crore. Free cash flow (post capex) remains robust at around Rs 4,000 – Rs 5,000 crore.
The Supreme Court (SC) has recently barred the government from further divestment, thereby fading the hope of an eventual minority buyout. Vedanta, in dire need of cash, will be compelled to increase dividend payout to service its highly leveraged balance sheet, the broking firm said in a Q3 results update.
Angel Broking retain ‘Accumulate’ rating on the stock as broking firm expect capacity expansions to help the company offset the pressure from falling realizations.
“The Management expects total integrated silver production to be 375,000MT in FY2016. The Management also indicated that the expansion projects remain on track, which should help the company drive volumes. The Management had kept the capex guidance unchanged at around $200-$225 million, including sustenance capex”, Angel Broking said in a report.
Hindustan Zinc, the best play in the metals space, gets a facelift with the SC stating that a stake sale cannot take place without its permission, according to Religare Institutional Research. The broking firm maintains ‘Hold’ rating on the stock with a target price of Rs 175.
At 12:03 p.m. the stock was up 5.5% at Rs 167 as compared to 0.08% decline in S&P BSE Sensex. A combined 3.54 million shares changed hands on the counter on the BSE and NSE so far.