Hindustan Zinc Share Price

Hindustan Zinc Limited is an Indian mining company, specialising in zinc production. It is the country’s largest and the world’s second-largest integrated zinc producer. Hindustan Zinc is a subsidiary of Vedanta Limited.

While Vedanta Limited holds a 64.9% stake in the company, the Government of India has a 29.5% stake, as of December 31, 2023. It is listed on both the National Stock Exchange and BSE.

The market capitalisation of Hindustan Zinc Limited stood at over ₹1,32,590 crore as of January 9, 2024. Hindustan Zinc share price has gained more than 3%23.81% in the last three years.

Business Operations

Hindustan Zinc Ltd is India's only integrated producer of zinc and lead. The company produces three types of zinc: special high-grade zinc used in construction, infrastructure and household appliances; high-grade zinc; and prime western zinc. The company's total metal production capacity is 1.123 million tonnes.

The company also manufactures pure lead used in lead-acid batteries, ceramic glazes and electrodes. It also produces silver (fifth largest globally), used in photographic material, conductors and jewellery. The company’s products also include cadmium for Ni-Cd batteries, stabilisers, coatings and alloys and sulphuric acid employed in fertilisers, dyes, textiles and sugar refining. Hindustan Zinc Ltd has also diversified into the wind energy sector.

Its wind power projects are among India’s largest and the company has a total generation capacity of 273.5 MW across 5 states.

Hindustan Zinc Limited has a total resource and reserve base of 460.1 million tonnes, with an average zinc-lead grade of 6.8%. Its fully integrated zinc operations currently command approximately 80% market share in India's primary zinc industry. Globally, it is the 5th largest silver producer, with an annual capacity of 800 metric tonnes.

The company's operations include lead-zinc mines, zinc smelters using lead smelters, and pyrometallurgical lead-zinc smelters. It is also engaged in underground zinc mining operations (the world's largest) at Rampura Agucha, Rajasthan.

The company's operations span five districts in Rajasthan- Udaipur, Chittorgarh, Bhilwara, Rajsamand and Ajmer, and one district in Uttarakhand. These facilities include the Zawar Group of Mines, Rajpura Dariba Mine, Sindesar Khurd Mine, Rampura Agucha Mine and Kayad Mine.

Its zinc-lead processing facilities comprise smelters at Debari, Chanderiya and Dariba, alongside a silver refinery situated at Pantnagar in Uttarakhand.

Hindustan Zinc Ltd in the financial year 2022-23 started its fertiliser project through the establishment of Hindustan Zinc Fertilisers Private Limited (HZFPL). The company also set up a new roaster plant with a capacity of 160 Ktpa. Its alloy plant, a part of Hindustan Zinc Alloys Private Limited (HZAPL), is scheduled for commissioning in the fiscal year 2023-24. The company also became REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) registered in FY23. This will enable it to penetrate the US and European markets.

Financial highlights

The company’s revenue from operations for FY23 stood at ₹34,098 crore, up 16% from ₹29,440 crore in FY22. The profit after tax in FY23 increased to ₹10,511 crore compared to ₹9,629 crore in FY22. In FY23, the earnings before interest, tax, depreciation and amortization (EBITDA) increased to ₹17,590 crore from ₹16,289 crore in FY22. Its EBITDA margin dropped to 52% in FY23 compared to 55% in FY22. The company's earnings per share (EPS) stood at ₹24.88 in FY23 compared to ₹22.79 in FY22.