Buy Hindustan Zinc - Result Update - Emkay

Reco: BUY Hindustan Zinc
CMP: Rs 127
Target Price: Rs 159

Stable performance continues

Revenue at Rs 27.9 bn up 6% on both YoY and QoQ basis broadly in line with estimates. The fall in LME was offset by depreciating rupee giving steady realizations.

EBITDA at Rs 14 bn was down 7% YoY and 12% QoQ primarily due to increased mining costs. EBITDA margin stood at 50% down 700 bps YoY basis and 1000 bps on QoQ basis.

APAT at Rs 12.8 bn, broadly in line with estimates was flat on YoY basis. The shortfall on account of lower margins was offset by higher other income Rs 3.9 bn (up 84%) .

We refine our FY12E and FY13E assumptions of LME and exchange rate. No change in earnings; retain BUY with a target price of Rs 159 (6xFY13 EV/ EBITDA).

Source : Equity Bulls

Keywords