Hindustan Zinc Limited

Industry Profile : Mining as primary sector of economics is very important for development. Not for employment but utilization of natural resources. Minerals constitute the back-bone of economic growth of any nation and India has been eminently endowed with this gift of na­ture. There are many evidence that exploitation of minerals like coal, iron-ore, copper, lead-zinc has been going on in the country from time immemorial. The Mining industry in India is a major economic activity which contributes significantly to the economy of India. The GDP contribution of the mining industry varies from 2.2% to 2.5% only but going by the GDP of the total industrial sector it contributes around 10% to 11%. Even mining done on small scale contributes 6% to the entire cost of mineral production. Indian mining industry provides job opportunities to around 700,000 individuals

However, the first recorded history of mining in India dates back to 1774 when an English Company was granted permission by the East India Company for mining coal in Raniganj. M/s John Taylor & Sons Ltd. started gold mining in Kolar Gold Fields in the year 1880. The first oil well was drilled in Digboi in the year 1866 – just seven years after the first ever oil well was drilled anywhere in the world viz. in Pennsylvania state, USA in 1859. Mining activities in the country however remained primitive in nature and modest in scale uptill the beginning of the current century. Thereafter, with progressive industrialisation the demand for and hence the production of various minerals gradually went up. After India became independent, the growth of mining under the impact of successive Five Year Plans has been very fast. There are ambitious plans in coal, metalliferous and oil sectors to in­crease production of minerals during the 8th Five Year Plan and thereafter.

Company Profile : The company incorporated on 1966. The company is miner of Zinc, lead and silver. It manufactures 99.99% pure lead used in lead acid battery, ceramic glazes, electrodes, etc. It also manufactures silver used in photographic material, conducter, jewellery, etc. The company also produces cadmium, whose purity ranges from 99.95–99.99% .It is used in Ni–Cd batteries, stablizers, coating and alloys. HZL also manufactures sulphuric acid used in fertilizers, dyes, textiles, sugar refining, etc. It manufacturers three qualities of zinc –– special high grade zinc used in construction, infrastructure, household appliances etc; high grade zinc and prime western zinc. It also in smelting business of Lead, Zinc. The company own Five mines Zinc and lead. Four Zinc smelters, One lead smelter, seven sulfuric acid plants, one silver refinery plnts and six captive power plants.

Shareholding Pattern : The company don’t have large Public shareholding. formerly it was Public sector holding. Govt sold majority to Vedanta group. Vedanta group hold 64.92%. 29.54% held by Govt of India. you may call govt as promoter or public as the case is still on that weather it is right to sell such holding to foreign company. 5.54% is in open public out of which large part is held by foreign investors. Mutual funds hold 0.63%. Financial Institutions hold 0.02%. INSURANCE COMPANIES HOLD 0.42% REMAINING IS WITH PUBLIC.

Financials and Ratios :

 2010-112011-122012-132013-142014-152015-162016-17
Revenue10,905.1912,948.1414,731.9915,535.4317,609.4416,955.8621,272.00
Net profit4,900.495,526.046,899.486,904.628,178.008,166.588,316.00
Net profit margin48.8148.4554.3250.6355.3057.4044.23
EPS11.6013.0816.3316.3419.3519.3319.68
Book Value53.3363.6276.3988.56102.6088.4872.91
Dividend per share12.403.103.504.4027.8029.40
Dividend payout8.6218.3518.9821.4122.73143.83149.37
ROE21.7420.5521.3718.4518.8621.8426.99
ROCE20.8519.7320.5417.6417.7720.3826.34
ROA19.5618.7419.4516.5616.6914.7816.05
Debt to equity0000000.26
Asset turnover40.0738.6835.8032.7130.1825.7536.29

Future Prospectus : Zinc is important industrial metal, having so many different uses like galvanization, to medical use. It make it very important in Automobile industry. Having access to such sources of raw material makes it unavoidable. The company is cash rich and the business is also making good profit. it is must to keep it on portfolio.

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About Ashutosh

Tracking Indian Capital Market since 2014. Finance Student, Love to write about Finance and investing