Hindustan Zinc : Strong Comeback from Demand Zone with High Vol

530
📈Technical Analysis

Since 2020, Hindustan Zinc rose from ₹130–₹150 to ₹380–₹400 by 2021, and this ₹380–₹400 zone acted as a major resistance level throughout 2022 and 2023.

In April 2024, the stock broke out above the ₹380–₹400 resistance zone and surged to an all-time high of ₹807 in May 2024.

From that peak, the stock experienced a sharp correction of nearly 50% and dropped back to the ₹380 level. However, the same ₹380–₹400 zone, which previously acted as strong resistance, has now turned into a solid support zone, as seen in March, April, and May 2025.

Taking support from this demand zone, the stock rebounded sharply and broke its recent lower high, supported by a significant trading volume of 15.5 million shares — the highest volume recorded in the past nine months.

If this bullish momentum continues, the stock may potentially reach the first target of ₹580, the second target of ₹695, and the third target of ₹810, which marks its all-time high.

Targets:
🎯 ₹580 (Target 1)
🎯 ₹695 (Target 2)
🎯 ₹810 (All-time high, Target 3)

Support Levels:
🔻 ₹475–₹485 (first support)
🔻 ₹380–₹400 (major demand zone)

👍This demonstrates a textbook resistance-turned-support confirmation with bullish price structure.

💰Q4 FY24 Key Financial Highlights:
  • Total Income: ₹9,041 Cr (vs ₹8,556 Cr in Q3 FY24 and ₹7,550 Cr in Q4 FY23)
  • Total Expenses: ₹4,258 Cr (vs ₹4,098 Cr in Q3 FY24 and ₹3,896 Cr in Q4 FY23)
  • Total Operating Profits: ₹4,783 Cr (vs ₹4,458 Cr in Q3 FY24 and ₹3,654 Cr in Q4 FY23)
  • Profit Before Tax: ₹3,749 Cr (vs ₹3,491 Cr in Q3 FY24 and ₹2,736 Cr in Q4 FY23)
  • Profit After Tax: ₹2,976 Cr (vs ₹2,647 Cr in Q3 FY24 and ₹2,042 Cr in Q4 FY23)
  • Diluted Normalized EPS: ₹7.04 (vs ₹6.26 in Q3 FY24 and ₹4.83 in Q4 FY23)
    📌The sharp sequential increase across all metrics highlights strong quarter-on-quarter momentum.

    🔍Fundamental AnalysisNet Profit Up 47% YoY: Q4 profit jumped to ₹3,003 Cr from ₹2,038 Cr last year, driven by metal price strength and cost efficiency

    Revenue Growth: Revenue rose ~20% YoY to ~₹9,087 Cr

    Record Production: Q4 saw the highest-ever production—310 kt of mined metal and 1,052 kt refined metal

    Lowest Cost of Production: Zinc CPO hit a 16-quarter low of $994/tonne, down 5% YoY

    Strong Market Position: Holds ~75% share in domestic zinc, remains among world’s top integrated producers. Free cash flow was ₹13,784 Cr in FY25

    Robust Dividend: Recommended record dividend of ₹135 per share for FY24–25

    Expansion Plans: FY25 capex ~₹3–3.2k Cr for mining & smelting capacity growth

    ESG Leadership: Top-ten recognition in Sustainability, zero-harm goal, award-winning recycling initiatives .

    🏁Conclusion
    Hindustan Zinc has delivered a powerful Q4 earnings beat and confirmed a textbook resistance-turning-support setup at ₹380–₹400. With strong production, cost efficiency, and market dominance, this stock is technically and fundamentally well-positioned for upside with targets up to ₹810.

    📌Actionable Insight: Watch how the stock behaves above ₹400—if it holds with bullish confirmation, a rally toward ₹580–₹695—and possibly ₹810—is increasingly likely.

    Disclaimer:lnkd.in/gJJDnvn2

Aviso legal

As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.