This metal stock has zoomed 175% in 8 weeks; m-cap crosses Rs 3 trillion

Hindustan Zinc share price: Stock hits a new of Rs 807, surging 9 per cent in the intraday trade

Shares of Hindustan Zinc continued their dream run on the bourses, hitting a new high of Rs 807 on the BSE on Wednesday, as they rallied nearly 9 per cent in today's intraday trade. The shares extended their Tuesday's 20-per cent surge in an otherwise range-bound market on a healthy outlook.

At 10:08 AM, the stock was trading 7 per cent higher at Rs 792.55 as compared to 0.17 per cent rise in the S&P BSE Sensex. The counter saw huge trading volumes today, with a combined nearly 7.4 million equity shares changing hands on the NSE and BSE in less than an hour of trading.

In the past one week, the stock of the metal company has soared 44 per cent. Further, in the past one month, it has zoomed 97 per cent, as against 0.33 per cent gain in the S&P Sensex. In the past eight weeks, since March 27, the market price of Hindustan Zinc has skyrocketed 175 per cent from a level of Rs 293.75.

A sharp run-up in stock price has pushed the market capitalisation (market cap) of Hindustan Zinc beyond Rs 3 trillion for the first time on Tuesday. Currently, the company's market cap stands at Rs 3.30 trillion, BSE data shows.

With this, Hindustan Zinc stands at 22nd position in the overall market cap ranking, ahead of Hindustan Aeronautics, Mahindra & Mahindra, Avenue Supermarts, Power Grid Corporation, Coal India, and Titan Company.

Hindustan Zinc is a Zinc-Lead and Silver business, and is the world's second largest integrated zinc producer and the third largest silver producer.

The company has a market share of around 75 per cent of the growing zinc market in India with its headquarters at Zinc City, Udaipur, along with Zinc-Lead mines and smelting complexes spread across the state of Rajasthan.

As on March 31, 2024, Vendata held 64.92 per cent stake in Hindustan Zinc. The government of India held 29.54 per cent holding in the company through the President of India, shareholding pattern data shows.

The management expects domestic zinc demand to remain strong owing to the government’s efforts to upgrade India’s infrastructure and manufacturing output in the election year and impressive automobile sales.

Both mined metal and refined metal production in the current financial year 2024-25 (FY25) is expected to be higher than last year, given the rampup of all major projects commissioned in the last year and better capacity utilisation. Mined metal is expected to be between 1,100-1,125 kt & refined metal production in the range of 1,075-1,100 kt.

FY25 saleable silver production is projected to be between 750 MT and 775 MT.

Zinc cost of production in FY25 is expected to be in between US$ 1,050 and 1,100 per MT. Project capex for the year is expected to be in the range of $ 270-325 million, Hindustan Zinc said on FY25 outlook.

The company has received all the approvals for operating the Bamnia Kalan mines and it is in process of finalizing the business partner to start the site activities.

Hindustan Zinc will continue to benefit from its favourable capital structure and healthy liquidity, driven by dominant position in the domestic market, high cash flow from the core business, and efficient and integrated operations, according to analysts.