A powerhouse in the global metals sector and stands as the world’s second-largest integrated zinc producer and third-largest silver producer. In a significant move that marks a new chapter in its growth story, it has secured a strategic acquisition in the precious metals sector. This development comes at a time when the company is actively pursuing its vision of diversifying its portfolio beyond its traditional zinc and silver operations.
HZL’s successful bid for the Dugocha Gold Mine Block in Rajasthan, a move that not only strengthens its position in the precious metals market but also aligns with India’s growing mineral resource needs. This acquisition represents a crucial step in HZL’s journey toward becoming a more diversified metals producer.
Share Price Movement
The share price of Hindustan Zinc Limited went up by 0.73 percent to Rs. 498.95 per share on Monday, an increase from its previous close of Rs. 495.35 per share. The market capitalisation now stands at approximately Rs. 2,10,822 crore as of November 18, 2024.
What Happened
Hindustan Zinc Limited (HZL) won the auction and became the preferred bidder for the Dugocha Gold Mine Block in Salumber, Rajasthan. This strategic acquisition expands their precious metals portfolio. The company won with a final price offer of 8.15% through an e-auction on November 15, 2024. The block spans 472 hectares and contains estimated resources of 1.74 Mt with 1.63g/t gold.
Q2 Financial Highlights
According to its recent filing, in the quarter ending September 2024, Hindustan Zinc Limited’s consolidated revenue from operations has increased by 21.3 percent YOY from Rs. 6,792 crore in Q2 FY24 to Rs. 8,242 crore in Q2 FY25 and increased by 1.37 percent QoQ from Rs. 8,130 crore in Q1 FY25.
The company’s consolidated net profit has increased by 32.3 percent, from Rs. 1,737 crore in Q2 FY24 to Rs. 2,298 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit has decreased by 2.5 percent QoQ from Rs. 2,358 crore.
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Market Outlook
The global zinc market faces some challenges but shows positive signs. Production is expected to drop by 1% to 13.6 Mt in 2024, while consumption may rise by 2.6% to 13.8 Mt. Zinc prices might stay volatile due to interest rates and Middle East tensions. However, India’s market remains strong with 20% year-over-year growth in domestic sales. The Indian economy shows optimism with a manufacturing PMI of 59.1 in March 2024, reflecting sector expansion.
Shareholding Pattern
As of the November 2024 shareholding pattern, Hindustan Zinc Limited is primarily held by the promotors at 63.42 percent, foreign institutional investors hold 1.01 percent, and the public with 2.92 percent.
About Company
Hindustan Zinc Limited (HZL), established in 1966, leads India’s zinc, lead, and silver markets, with headquarters in Udaipur, Rajasthan. As a subsidiary of Vedanta Resources, HZL ranks among the world’s largest zinc producers, playing a vital role in India’s mining sector.
HZL offers a range of products, including zinc for steel galvanisation, lead for batteries, and silver as a by-product. The company operates multiple mines in Rajasthan, with advanced underground and open-pit facilities. It also boasts state-of-the-art refining plants in Chanderiya and Debari, ensuring top-grade output. HZL’s growth strategy includes expanding mining projects and committing to sustainable practices.
As a prominent player in India’s zinc industry, HZL benefits from the country’s rising infrastructure demand. With a focus on capacity expansion and community engagement, Hindustan Zinc is poised for sustained growth and a long-term impact on India’s economic development.
Written By Fazal Ul Vahab C H
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