Hindustan Zinc Shares Up 2% Post Better-Than-Expected Q4 Result, Should You Buy This Vedanta-Owned Stock?

Hindustan Zinc Share Price Today: Shares of Hindustan Zinc rallied on Monday, days after reporting an upbeat fourth quarter result for the financial year 2024-25. Vedanta's subsidiary had reported a 47% YoY increase in its net profit during the March quarter.

Hindustan Zinc stock was trading 2.13% higher at Rs 454.80 per share on BSE on Monday at 11 am with a market capitalisation of Rs 1,92,040.75 crore. The company scrip opened at Rs 452.95 apiece.

Hindustan Zinc Shares Witness High Trading Volatility

Hindustan Zinc shares are rallying today amid high trading volatility. According to BSE website, the company strock witnessed a spurt in volume by more than 1.37 times on Monday. Hindustan Zinc touched its 52-week high mark of Rs 807 per share on BSE on 22 May, 2024. The company stock is recovering from its 52-week-low mark of Rs 378.65 per share it touched on 3 March, 2025.

Hindustan Zinc Q4 Result

Hindustan Zinc reported its second-best profit after tax of Rs 10,353 crores, which was 33% higher than the profit reported in the same period a year ago period. Its revenue increed nearly 18% YoY to Rs 34,083 crores and EBITDA stood at Rs 17,465 crores during the quarter under review.

The company registered highest ever Return on Capital Employed and generated strong free cash flow from operations (pre capex) of ₹ 13,784 crores.

The Udaipur-headquartered company had reported a historic high production of mined metal of 1,095 kt and refined metal of 1,052 kt during the quarter under review. As per the company's press release, it registered the highest ever domestic zinc sales of 603 kt with a market share of 77% and a significant increase in value-added products. Hindustan Zinc also surpassed 13.1 Mt metal reserves (net of 1.2 Mt production) for the first time.

Hindustan Zinc Stock Price Recommendations Post Q4 Result

Hindustan Zinc's better than expected Q4FY25 performance was aided by it focus on cost control and sustained profitability, noted Motilal Oswal in its report on Monday. "We largely retain our earnings estimates for FY26-27E and expect HZ to sustain its profitability. The favorable pricing scenario could also support the earnings. At CMP, HZ trades at 7.7x FY27E EV/EBITDA, and we believe the current valuation prices in all positive factors. We reiterate our Neutral rating with a TP of INR460 (premised on 8x EV/EBITDA on FY27 estimates)," Motilal Oswal added in its report.

Commenting on Hindustan Zinc's guidance for FY25 and current spot metal prices, Antique Stock Broking Limited revised its silver output assumption and lead prices trajectory and retained 'Hold' rating for the stock.

"In-line with management guidance and given the current spot metal prices, we revise our silver output assumption downward by 13.4%/ 11.8% and lead prices downward by 4.8% resulting in a decrease in FY26/ 27 EBITDA by 1.8%/ 2.2% respectively to arrive at a TP of INR 432 (INR 451 earlier) at a target multiple of 7.3x FY27E EV/EBITDA. We retain HOLD rating as valuations are rich (currently trading at 9.1x FY27E EV/ EBITDA) and we would prefer attractive entry levels," read a note by Antique Broking.

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