Loading Now

HZL net profit reaches ₹11,402 cr by FY27, driven by power cost savings

HZL net profit reaches ₹11,402 cr by FY27, driven by power cost savings


Brokerage Ventura Securities expects Hindustan Zinc to benefit from power cost savings and operating leverage, pushing net profit to ₹11,402 crore by FY27.

The timely expansion in silver production capacities will help the company, given the exploding demand for the metal, it added.

“With power cost saving measures and operating leverage, EBITDA and PAT are expected to reach ₹19,142 crore and ₹11,402 crore by FY27, respectively.”

The brokerage expects HZL to turn net debt-free by FY26. It has initiated coverage on the company with a buy rating and a price target of ₹585, based on a Discounted Cash Flow methodology, over the next 24 months, representing a potential upside from the current price of ₹475.

HZL has planned a capex of ₹16,000 crore for the period FY24-27 to fund the roasting plant at Debari, the fumer and fertilizer plant at Chanderiya (sulphuric acid forward integration), and the addition of 450 MW renewable energy capacity.

“HZL is expected to expand its mined production to 1.2 million tonnes in FY27 from one million tonnes, with refined zinc/lead production increasing from 8.17/2.16 lakh tonne to 9.31/2.40 lakh tonnes. Silver (by product of lead concentrate) is expected to increase from 746 tonnes to 800 tonnes,” said the brokerage.





Source link

Post Comment