Hindustan Zinc Ltd.
ISIN: INE267A01025 • Market Cap: ₹2.34 Lakh Cr
The 5-Pillar Quality Audit for Hindustan Zinc Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (56.1%), Return on Capital Employed (62.3%), and equity compounding (61.1%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.37 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (17.4%) and 3Y PAT CAGR (30.1%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 13.72 vs PEG of 1.63 and Dividend Yield of 1.8%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 60.7%, backed by 35.1% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 62.3%)
Hindustan Zinc Ltd. generates exceptional return on capital employed of 62.3%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 61.1%)
Shareholder equity compounds at a healthy 61.1%, exceeding average Indian equity benchmarks.
Strong Topline Expansion (3Y Sales CAGR: 17.4%)
Revenue has expanded at 17.4% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 30.1%)
Net earnings have compounded at 30.1% annualized, demonstrating operating leverage.
Attractive Valuation Margin (P/E: 13.72)
Trading at a P/E multiple of 13.72, the stock offers a favourable risk-reward entry for quality compounding.
Deep Institutional Sponsorship (35.1%)
Mutual funds, domestic DIIs, and foreign FIIs hold 35.1%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Metals & Mining)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Metals & Mining space.
Quantitative Strategy Eligibility
Checking HINDZINC against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 88/100 and clean gearing.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Metals & Mining Sector Peer Comparison
Compare HINDZINC directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Hindustan Zinc Ltd. (HINDZINC)Current | 88/100 | ₹2.34 Lakh Cr | 13.72 | 62.3% | 0.37 | — |
| Adani Enterprises Ltd. (ADANIENT) | 58/100 | ₹4.03 Lakh Cr | 54.17 | 5.1% | 1.07 | View |
| JSW Steel Ltd. (JSWSTEEL) | 73/100 | ₹3.13 Lakh Cr | 12.64 | 10.7% | 0.96 | View |
| Hindalco Industries Ltd. (HINDALCO) | 71/100 | ₹2.33 Lakh Cr | 14.19 | 12.7% | 0.71 | View |
| Tata Steel Ltd. (TATASTEEL) | 62/100 | ₹2.30 Lakh Cr | 20.82 | 11.9% | 0.84 | View |
| Jindal Steel Ltd. (JINDALSTEL) | 58/100 | ₹1.14 Lakh Cr | 41.77 | 8.8% | 0.43 | View |
Frequently Asked Questions: Hindustan Zinc Ltd.
Q:What is the 5-Pillar Fundamental Score for Hindustan Zinc Ltd. (HINDZINC)?
Hindustan Zinc Ltd. has a RupeeTools Fundamental Score of 88/100, placing it in the 'Exceptional Quality' category. Its pillar scores are: Profitability (99/100), Financial Health (81/100), Growth (92/100), Valuation (77/100), and Ownership Quality (85/100).
Q:Is HINDZINC fundamentally strong for long-term investment?
Yes, HINDZINC exhibits solid fundamental strength with a 88/100 score, driven by a return on equity of 61.1% and a debt-to-equity ratio of 0.37.
Q:Does HINDZINC pass the Coffee Can Investing filter?
Yes! HINDZINC satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does HINDZINC compare against other Metals & Mining peers?
Within India's Metals & Mining sector, HINDZINC trades at a P/E of 13.72 and generates an ROCE of 62.3%. Compare its 5-Pillar score of 88/100 against top sector peers like Adani Enterprises Ltd. (58/100), JSW Steel Ltd. (73/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.