Hindustan Zinc Limited (HINDZINC) AI Stock Analysis

• Market Cap: ₹2.14T
• Dividend Yield: 4.64%
• Average Volume (3M): 423.94K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 1.05
• Revenue Growth: 8.90%
• EPS Growth: 20.90%
• Country: IN
• Employees: 3,557
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 9.27
• Shares Outstanding: 4,225,319,000
• 10 Day Avg. Volume: 510,863
• 30 Day Avg. Volume: 423,940
• PEG Ratio: 0.55
• Price to Book (P/B): 14.40
• Price to Sales (P/S): 5.81
• P/FCF Ratio: 18.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹688.00
• Price Target Upside: 9.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 31.64
• Revenue Forecast (FY): ₹394.81B

• Rating: 76 Outperform
• Price Target: ₹618.00 ▼(-1.69% Downside)
• Action: Reiterated Date: 01/31/26
• Date: Action: Reiterated 01/31/26

The score is driven primarily by strong financial performance (healthy growth, high margins, and solid free cash flow). Technicals are mixed with recent softness versus the 20-day trend despite longer-term strength, while valuation is supported by a strong dividend yield but offset by a mid-to-high P/E.

Positive Factors

High margins and profitability

Consistently high gross and net margins indicate the company converts sales into profit efficiently. Over the next 2–6 months this supports durable earnings, funds reinvestment and dividends, and provides cushion versus cyclical revenue swings thanks to structural cost advantages and operating discipline.

Strong free cash flow generation

Growing free cash flow and strong cash conversion enhance financial flexibility for capex, dividend payments and debt management. This durable cash generation reduces refinancing risk, enables steady capital allocation, and supports long-term value creation even in weaker commodity cycles.

Integrated, vertically linked operations

Vertical integration across mining, beneficiation and smelting secures feedstock, improves recoveries and lowers reliance on third-party concentrates. Structurally this reduces input cost variability, supports margin sustainability, and strengthens competitive position across commodity cycles.

Negative Factors

Commodity-price sensitivity

Heavy exposure to zinc, lead and silver prices means earnings and cash flow can swing materially with global cycles. Over 2–6 months, sustained price weakness or adverse treatment/refining economics can compress margins and limit reinvestment, making results cyclical despite operational strengths.

Slight decline in total assets

A decline in total assets could reflect asset sales or underinvestment in capacity. If due to lower reinvestment, this may constrain near-term production growth and reserve replacement, creating medium-term headwinds to volume-driven revenue expansion and long-term sustainability of output.

Product and geographic concentration

Concentration in a narrow set of metals and operations primarily in India increases exposure to metal-specific cycles and local regulatory, royalty, or permitting changes. This limits diversification benefits and can amplify revenue and regulatory risk over multi-month horizons.

Hindustan Zinc Limited Business Overview & Revenue Model

Company Description

Hindustan Zinc Limited explores for, extracts, and processes minerals in India, Asia, and internationally. It operates through two segments, Zinc, Lead, Silver & Others; and Wind Energy. The company produces refined zinc and lead, and silver, as well as sulphuric acid; and manufactures metals and related alloys. It also operates thermal captive power plants with a total power generation capacity of 505.5 megawatts; wind power plants with a capacity of 273.5 megawatts; solar power plants with a capacity of 40.42 megawatts; and waste heat power plants with a capacity of 40.67megawatts. The company was incorporated in 1966 and is headquartered in Udaipur, India. Hindustan Zinc Limited is a subsidiary of Vedanta Limited.

How the Company Makes Money

Hindustan Zinc makes money mainly by producing and selling metals and related by-products derived from its mining and smelting operations. The core revenue stream comes from sales of refined zinc, which is used largely for galvanizing steel and other industrial applications, and refined lead, used in batteries and other industrial uses. A significant contributor is silver, produced as a co-/by-product from processing zinc-lead ores, which the company sells into industrial and bullion-related markets. Additional earnings come from the sale of by-products and co-products generated during processing and smelting (e.g., sulfuric acid and other recoverable materials), where applicable. Revenue is driven by (1) sales volumes (metal production and dispatches), (2) realized commodity prices for zinc, lead, and silver (typically linked to prevailing market benchmarks), (3) product mix (the relative contribution of zinc vs. lead vs. silver and by-products), and (4) operating efficiency and cost control across mining, beneficiation, and smelting/refining, which affect margins. Because the business is commodity-based, profitability is sensitive to global metal prices, treatment/refining economics, ore grades and recoveries, input costs (power, fuel, consumables), and logistics. Significant factors that can influence earnings include production from captive mines and integrated smelters (reducing reliance on third-party concentrate purchases), foreign exchange movements where exports or benchmark pricing applies, and regulatory/royalty frameworks applicable to mining operations.

Hindustan Zinc Limited Financial Statement Overview

Summary

Strong profitability and efficiency: revenue growth is significant, margins (gross/net/EBIT/EBITDA) are high, and cash conversion is solid with growing free cash flow. Balance sheet leverage appears moderate with strong ROE, though total assets have slightly declined.

Income Statement

Hindustan Zinc Limited has shown strong revenue growth with a significant increase from the previous year, indicating a robust business trajectory. The company has maintained high gross profit and net profit margins, showcasing its ability to generate substantial profits from its operations. The EBIT and EBITDA margins are also strong, underscoring operational efficiency and profitability.

Balance Sheet

The balance sheet reveals a healthy equity position with a moderate debt-to-equity ratio, suggesting balanced leverage. The return on equity is impressive, reflecting efficient use of shareholder funds to generate profits. However, the total assets have slightly decreased, possibly indicating asset divestment or efficiency improvement measures.

Cash Flow

The cash flow statement reflects a positive trend in free cash flow growth, demonstrating effective cash management and operational efficiency. The operating cash flow to net income ratio is strong, highlighting the company's ability to convert net income into cash. The free cash flow to net income ratio further suggests a stable liquidity position.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	332.84B	330.41B	301.43B	328.83B	282.33B	220.71B
Gross Profit	253.18B	253.62B	128.05B	143.12B	129.71B	89.06B
EBITDA	185.85B	182.88B	147.30B	188.78B	172.85B	134.79B
Net Income	105.64B	103.53B	77.59B	105.11B	96.29B	79.80B
Balance Sheet
Total Assets	355.95B	344.90B	338.95B	354.67B	446.70B	457.27B
Cash, Cash Equivalents and Short-Term Investments	79.90B	93.00B	100.20B	99.09B	207.89B	179.58B
Total Debt	111.72B	115.36B	91.21B	121.88B	31.24B	72.01B
Total Liabilities	218.98B	211.64B	187.00B	225.35B	103.89B	134.14B
Stockholders Equity	136.97B	133.26B	151.95B	129.32B	342.81B	323.13B
Cash Flow
Free Cash Flow	30.83B	101.54B	94.80B	115.68B	96.93B	80.86B
Operating Cash Flow	55.80B	141.60B	133.46B	151.29B	126.91B	105.67B
Investing Cash Flow	-7.75B	-27.06B	-34.06B	65.62B	8.46B	-24.35B
Financing Cash Flow	-48.10B	-114.11B	-99.46B	-232.24B	-122.58B	-96.97B

Hindustan Zinc Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 628.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HINDZINC, the sentiment is Negative. The current price of 628.6 is above the 20-day moving average (MA) of 579.88, above the 50-day MA of 615.02, and above the 200-day MA of 511.19, indicating a bearish trend. The MACD of -21.77 indicates Positive momentum. The RSI at 29.96 is Positive, neither overbought nor oversold. The STOCH value of 11.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HINDZINC.

Hindustan Zinc Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VEDL	78 Outperform	₹2.60T	10.33	―	8.78%	8.87%	2.25%
HINDZINC	76 Outperform	₹2.14T	16.52	―	4.64%	8.90%	20.90%
HINDALCO	75 Outperform	₹2.02T	24.02	―	0.58%	13.19%	42.27%
NMDC	75 Outperform	₹684.79B	10.41	―	4.05%	20.05%	15.58%
PIIND	74 Outperform	₹438.84B	39.45	―	0.49%	-5.90%	-14.80%
MOIL	67 Neutral	₹59.52B	35.43	―	2.18%	―	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Hindustan Zinc Limited Corporate Events

ICRA Reaffirms Top Short-Term Credit Rating for Hindustan Zinc’s Rs 5,000 Crore Commercial Paper

Hindustan Zinc Limited has announced that ICRA Limited has reaffirmed the company’s highest short-term credit rating of [ICRA]A1+ for its Rs 5,000 crore commercial paper programme. The reaffirmation of this top-tier rating underscores the company’s strong credit profile and financial stability, supporting its access to short-term funding markets and reinforcing confidence among investors and other stakeholders.

Hindustan Zinc to Raise Up to ₹1,400 Crore via Listed NCDs on Private Placement

Hindustan Zinc Limited’s board committee has approved the issuance of unsecured, redeemable, rated, listed non-convertible debentures aggregating up to ₹1,400 crore, split into two separately transferable and redeemable principal parts of ₹420 crore (STRPP 1) and ₹980 crore (STRPP 2). The NCDs, to be issued on a private placement basis in up to 140,000 units and listed on BSE, provide the company with additional funding flexibility without creating any charge on assets, underscoring its use of capital markets to support financing needs while maintaining an unsecured debt structure, which will be closely watched by investors assessing its balance sheet and cost of capital.

Hindustan Zinc to Raise Up to ₹1,400 Crore via Listed NCD Issue

Hindustan Zinc Limited’s committee of directors has approved the issuance of unsecured, redeemable, rated, listed non-convertible debentures (NCDs) aggregating up to ₹1,400 crore, to be raised on a private placement basis. The issue will consist of up to 140,000 NCDs split into two separately transferable and redeemable principal parts: STRPP 1 of up to ₹420 crore and STRPP 2 of up to ₹980 crore, with the debentures proposed to be listed on BSE Limited. The instruments will be unsecured and key commercial terms such as tenure, coupon, payment schedule and redemption structure will be detailed in the disclosure documents, signalling the company’s intent to tap the bond market for sizable funding while maintaining flexibility through structured tranches for investors.

Hindustan Zinc Board Clears Q3 and Nine-Month FY26 Unaudited Results with Clean Review

Hindustan Zinc Limited’s board has approved the company’s unaudited standalone and consolidated financial results for the third quarter and nine months ended 31 December 2025 at its meeting held on 19 January 2026. The results, which cover the performance of the parent company and its subsidiaries including Hindustan Zinc Alloys, Hindustan Zinc Fertilisers and group foundations, have been reviewed by the statutory auditors, who issued an unmodified (clean) limited review report, indicating no material misstatements were found. The approved financial statements have been filed with the stock exchanges and will be available on the company’s website, reinforcing the miner’s compliance with SEBI’s disclosure requirements and providing investors and other stakeholders with updated visibility on its recent financial performance.

Hindustan Zinc Delivers Record Profit as Output, Margins and Shareholder Returns Surge

Hindustan Zinc Limited reported record operational and financial performance for the third quarter and nine months ended 31 December 2025, highlighted by its highest-ever quarterly profit after tax of ₹3,916 crore, driven by record revenue of ₹10,980 crore, record EBITDA of ₹6,087 crore with an industry-leading 55% margin, and its lowest production cost in five years. The company achieved best-ever third quarter mined and refined metal production, strengthened its silver output which contributed 44% of profits, completed debottlenecking at its Chanderiya and Dariba smelters to raise refined zinc capacity, secured a tungsten block in Andhra Pradesh, and delivered significantly superior shareholder returns versus broader and sectoral indices, underscoring its strong cost position, diversified revenue mix and enhanced growth prospects for investors and other stakeholders.

Hindustan Zinc Publishes Investor Presentation on Q3 FY26 Financial Results

Hindustan Zinc Limited has released an investor presentation summarizing its unaudited consolidated and standalone financial results for the third quarter and nine months ended December 31, 2025. The presentation, filed with the stock exchanges under disclosure norms and made available on the company’s website, is intended to provide greater transparency and structured communication to investors and other stakeholders about the company’s recent financial performance.

Hindustan Zinc Notifies Exchanges of Vedanta Tax Penalty Order

Hindustan Zinc Limited has informed the stock exchanges that its promoter and holding company, Vedanta Limited, has received an order from the Deputy Commissioner of Commercial Taxes in Bengaluru confirming a penalty of INR 31.52 lakh, along with associated tax demand and interest, related to alleged ineligible input tax credit claims and discrepancies in turnover declarations for FY 2021-22. Vedanta has stated that it is evaluating its next course of action in the matter and does not expect the order to have any material financial impact, suggesting limited operational or earnings implications for the wider Vedanta group and, by extension, for Hindustan Zinc’s stakeholders at this stage.

Hindustan Zinc Receives Independent ESG Rating of 62 from ESGRisk.ai

Hindustan Zinc Limited has disclosed that ESG Risk Assessments and Insights Limited has assigned the company an ESG rating of 62 as part of its annual environmental, social and governance assessment. The rating, which was independently prepared based solely on publicly available information without any engagement from Hindustan Zinc, underscores the growing importance of third-party ESG evaluations for listed Indian corporates and provides investors with an additional, externally derived benchmark on the company’s sustainability performance.

Hindustan Zinc Shareholders Approve New Independent and Government Nominee Directors via Postal Ballot

Hindustan Zinc Limited has announced that shareholders have approved two board appointments via a postal ballot conducted through remote e-voting. Based on the scrutinizer’s report, the resolutions to appoint Thomas Mathew T as a non-executive independent director and Ashim Kumar Modi as a government nominee non-executive director were passed with the requisite majority, reinforcing the company’s governance framework and board representation, including direct government participation, with results and supporting documents made available on the company and NSDL websites.