Hindustan Zinc stock turns attractive after the recent correction

Rising volumes and stable costs should support earnings despite volatile base metal prices

After falling to its 52-week low last week, the stock of Hindustan Zinc has rebounded a bit, gaining 8.4 per cent. The pressure on the stock was due to the weak demand and volatility in base metal prices. 

Zinc prices on the London Metal Exchange, after regaining the $3,000 a tonne levels at the start of April, have slid to $2,500 a tonne couple of weeks ago. The 10 per cent decline in the metal, which is largely used in alloys, saw the correction due to concerns of a full-blown tariff war between the US and China. 

This would have