The stock of Hindustan Zinc is buzzing at the bourses. It has seen 8.5 per cent jump in the last week while volumes at the counter have zoomed by 336.3 per cent. Hindustan Zinc, one of the group companies of the Sterlite group, is the largest zinc producer in India. With total capacity of 4 lakh tonne, it meets approximately 75 per cent zinc demand of the country. | |
| Buoyant zinc price trends both domestically and internationally on account of tight supply, has helped sentiments at the counter. Recently, the company hiked the primary selling price of zinc by 11.80 per cent at Rs 87600 per tonne, effective November 1, 2005. |
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| This follows an 11 per cent hike by the company in October 2005. The hike was announced in view of the sharp rise in international zinc prices and also rising demand in the domestic market on account of increased activities in infrastructure, construction and manufacturing sectors. |
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| The other news which has the stock buzzing is that government is planning to sell its residual 29.53 per cent stake in the company through a public offer in next few months after offloading about 45 per cent in 2002 and 2003 to Sterlite Group. At Rs 231, the stock trades at a trailing 12 month P/E of 14.5 times. |
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| Analysts are bullish about the company's business prospects considering its dominant position, large capacity and improved zinc business scenario. |
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