Metals might prove the mettle for Hindustan Zinc; stock falls over 6%

While the company's fourth-quarter may be a blip, the road ahead looks good given the announcement of its next phase of expansion

Shares of Hindustan Zinc, which have outperformed the S&P BSE Sensex in the last three months, fell over six per cent in the last three days, following subdued results for the quarter ended March 2018, correction in the broader markets and recent weakness in global zinc and silver prices.

With the company moving from open-cast to underground mining, mined metal production declined 18.3 per cent year-on-year during the January-March quarter. Nonetheless, even at 255,000 tonnes, mined metal production rose six per cent in the fourth quarter, compared to the previous quarter, and ahead of estimates.

According to analysts at Kotak