Hindustan Zinc Limited Fundamental Analysis
Hindustan Zinc Limited (HINDZINC.NS) shows strong financial fundamentals with a PE ratio of 17.22, profit margin of 35.05%, and ROE of 87.85%. The company generates $394.5B in annual revenue with strong year-over-year growth of 17.66%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 87.1/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze HINDZINC.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentHINDZINC.NS demonstrates superior asset utilization.
Valuation Score
ExcellentHINDZINC.NS trades at attractive valuation levels.
Growth Score
ExcellentHINDZINC.NS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentHINDZINC.NS maintains a strong and stable balance sheet.
Profitability Score
ExcellentHINDZINC.NS achieves industry-leading margins.
Key Financial Metrics
Is HINDZINC.NS Expensive or Cheap?
P/E Ratio
HINDZINC.NS trades at 17.22 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HINDZINC.NS's PEG of 0.51 indicates potential undervaluation.
Price to Book
The market values Hindustan Zinc Limited at 10.53 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.38 times EBITDA. This signals the market has high growth expectations.
How Well Does HINDZINC.NS Make Money?
Net Profit Margin
For every $100 in sales, Hindustan Zinc Limited keeps $35.05 as profit after all expenses.
Operating Margin
Core operations generate 46.31 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $87.85 in profit for every $100 of shareholder equity.
ROA
Hindustan Zinc Limited generates $32.65 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hindustan Zinc Limited produces operating cash flow of $55.79B, showing steady but balanced cash generation.
Free Cash Flow
Hindustan Zinc Limited produces free cash flow of $30.83B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $7.30 in free cash annually.
FCF Yield
HINDZINC.NS converts 1.29% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.22
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.51
vs 25 benchmark
P/B Ratio
Price to book value ratio
10.53
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.04
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.39
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.47
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.88
vs 25 benchmark
ROA
Return on assets percentage
0.33
vs 25 benchmark
ROCE
Return on capital employed
0.59
vs 25 benchmark
How HINDZINC.NS Stacks Against Its Sector Peers
| Metric | HINDZINC.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.22 | 25.84 | Better (Cheaper) |
| ROE | 87.85% | 1029.00% | Weak |
| Net Margin | 35.05% | -107065.00% (disorted) | Strong |
| Debt/Equity | 0.39 | 0.43 | Neutral |
| Current Ratio | 1.47 | 6.25 | Neutral |
| ROA | 32.65% | -5614.00% (disorted) | Strong |
HINDZINC.NS outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hindustan Zinc Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
79.98%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
51.92%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
113.56%
Industry Style: Cyclical, Commodity, Value
High Growth