Hindustan Zinc joins Rs 1-lakh crore m-cap club; stock hits record high
The stock hit a lifetime high of Rs 259, up 11% on the BSE in intra-day trade on back of heavy volumes.
 "Hindustan Zinc joins Rs 1-lakh crore m-cap club; stock hits lifetime high")
Hindustan Zinc has entered into the elite league of corporate entities with a market value of over Rs 1 lakh crore amid a sharp rally in the company's stock price.
The stock hit a lifetime high of Rs 259, up 11% on the BSE in intra-day trade on back of heavy volumes. The trading volumes on the counter more than doubled with a combined 3.01 million shares changed hands on the BSE and NSE.
At 12:02 am, the stock was up 10% at Rs 256, with a market capitalization of Rs 108,316 crore, the BSE data shows.
The stock hit a lifetime high of Rs 259, up 11% on the BSE in intra-day trade on back of heavy volumes. The trading volumes on the counter more than doubled with a combined 3.01 million shares changed hands on the BSE and NSE.
At 12:02 am, the stock was up 10% at Rs 256, with a market capitalization of Rs 108,316 crore, the BSE data shows.
Vedanta Group company Hindustan Zinc, joining ranks with giants like Tata Consultancy Services (TCS), Reliance Industries (RIL), HDFC Bank, ITC and Infosys.
Hindustan Zinc now stands at 24th position in overall m-cap ranking, overtake cement giant UltraTech Cement, which having m-cap of Rs 107,518 crore.
Since July 20, the stock of Hindustan Zinc has outperformed the market by gaining 34% post April-June (Q1FY17) results, as compared to 0.88% rise in the S&P BSE Sensex.
While announcing Q1FY17 results, Agnivesh Agarwal, chairman of Hindustan Zinc said, we witnessed a rally in silver prices, which along with increasing volumes is accentuating its contribution in company’s profits, having reached almost 20% at present.
“Our transition to underground mining is progressing well with robust mine development, especially during last few months. Production from underground mines has also ramped up significantly,” he added.
“Zinc outlook is expected to remain firm on declining mine supply, with an estimated 1-1.2MT of mines/smelters comprising Glencore, Century and Lisheen mines going off stream. Major Chinese zinc smelters had also announced cuts of 0.5MT of zinc production in CY15 reducing the refined metal supply. Silver prices also have improved 38% YoY which would aid Hindustan Zinc's profitability,” analyst at Antique Stock Broking said in metals sector update.
Hindustan Zinc now stands at 24th position in overall m-cap ranking, overtake cement giant UltraTech Cement, which having m-cap of Rs 107,518 crore.
Since July 20, the stock of Hindustan Zinc has outperformed the market by gaining 34% post April-June (Q1FY17) results, as compared to 0.88% rise in the S&P BSE Sensex.
While announcing Q1FY17 results, Agnivesh Agarwal, chairman of Hindustan Zinc said, we witnessed a rally in silver prices, which along with increasing volumes is accentuating its contribution in company’s profits, having reached almost 20% at present.
“Our transition to underground mining is progressing well with robust mine development, especially during last few months. Production from underground mines has also ramped up significantly,” he added.
“Zinc outlook is expected to remain firm on declining mine supply, with an estimated 1-1.2MT of mines/smelters comprising Glencore, Century and Lisheen mines going off stream. Major Chinese zinc smelters had also announced cuts of 0.5MT of zinc production in CY15 reducing the refined metal supply. Silver prices also have improved 38% YoY which would aid Hindustan Zinc's profitability,” analyst at Antique Stock Broking said in metals sector update.
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First Published: Oct 03 2016 | 12:07 PM IST