The shares of the Metal company, specializing in mining and producing zinc, lead, silver, and cadmium, are in focus upon plans to double its metal production within the next five years.
Price action
With a market capitalization of Rs. 1,60,604.38 crores on Monday, the shares of Hindustan Zinc Ltd were down upto 1.7 percent making a high of Rs. 397.70 per share compared to its previous closing price of Rs. 390.75 per share.
What Happened
Hindustan Zinc Ltd, engaged in mining and producing zinc, lead, silver, and cadmium, as per sources, it aims to double its metal production to two million tonnes per annum (MTPA) within the next five years, as stated by Chairperson Priya Agarwal Hebbar.
Chairperson Priya Agarwal Hebbar said in a letter to shareholders that, with India’s expansion in steel capacity and a strong focus on infrastructure, Hindustan Zinc is on track to double its production to two MTPA by 2030, as its zinc plays a critical role in steel galvanization.
The company currently has a metal production capacity of 1.1 MTPA and Priya Agarwal Hebbar mentioned that the company is also expanding into critical minerals and has been named the preferred bidder for several blocks across the country.
Over the past five years, the company’s metal production has grown at a compound annual growth rate (CAGR) of 4 percent, while silver production has increased by 5 percent.
Key Insights
The company offers a strong dividend yield of 3.33 percent and has maintained a solid average ROE of 33.23 percent and ROCE of 30.86 percent over the last three years.
About the company
Hindustan Zinc Ltd is a leading global producer of zinc, lead, silver, and cadmium, and a subsidiary of Vedanta Limited. The company is engaged in mining, refining, and producing these metals, playing a critical role in industries like steel galvanization and infrastructure development.
Financials
The company’s revenue rose by 16.12 percent from Rs. 7,606 crore to Rs. 8,832 crore in Q3FY24-25. Meanwhile, Net profit rose from Rs. 2,028 crores to Rs. 2,678 crore during the same period.
Written by Sridhar J
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