Hindustan Zinc zooms on metal price hike

DALAL STREET SPIKES

The first-hour of trading on Thursday saw Hindustan Zinc reverse its consistent declining trend throughout this month by gaining more than 7 per cent in early trade on news of a hike in its domestic zinc price.

The stock however gave up some of its early gains and slid down throughout the rest of the day to close at Rs 389.05, still up 6.55 per cent over yesterday's closing price.

Riding on a wave of increasing global metal prices, the scrip has been on fire since the beginning of the year. Marking the new-year at around just Rs 250, the stock has put on more than 50 per cent in the last three months.

However, it has consistently slid from a high of around Rs 425 in the beginning this month, except for Thursday's gain.

The company had recently augmented its capacity for producing lead from 35,000 tonne per annum to 85,000 by setting up expanded capacity at Chanderiya last month. Hindustan Zinc's profits doubled to to Rs 329 crore in the last quarter while sales increased 60 per cent to Rs 912 crore.