Hindustan Zinc shares up 13% in two weeks, rally likely to continue

Company's cost-saving measures and debt reduction expected to boost company's margin

Despite a weak secondary market, shares of Hindustan Zinc have rallied over 13 per cent in a fortnight to trade around Rs 476. The gains have come ahead of the Anil Agarwal-led firm’s December quarter results on Tuesday.

 

So, what is underpinning the gains in the country’s largest integrated zinc producer and is there more steam left in this high dividend-yielding stock? Ventura believes Hindustan Zinc Ltd (HZL) shares could climb as much as Rs 585 in two years.

 

The domestic brokerage believes the company’s cost-saving measures and debt reduction will boost margin expansion.

 

“Due to power cost saving measures