Investment Idea-Hindustan Zinc Ltd(28-6-14)

Investment Opportunity: Hindustan Zinc Ltd. 

Industry: Mining/Mineral/Metal

Horizon: 8 to 12 months

(NSE Symbol: HINDZINC | BSE Code: 500188)

Last closing price (27-06-2014): Rs.163.90        Face Value:-2/-

Price Background: The stock made all-time high of Rs.184 recently on9-6-14  and all-time low of Rs..44 was made in the year 1996.High and Low for the year 2013 was Rs.143.25 & Rs.94 . The low for year 2014 (as on date) is Rs.114.80.

Fundamental: The Company’s sales rose by 7.45% this year compared to last year but the EPS remained flat at 16.33.The company has declared  total dividend of 175% i.e Rs.3.50 per share. Although at the current rate, the stock is at a P/E of10.03 against the industry P/E of 15.5. Therefore, I feel that the stock still has some room to move up.

Technical: Technically the stock is nicely poised as it has made new high recently..

Recommendation: I expect a return of 25-30% in 8-12 months. I therefore recommend investing at least 30% of the marked fund for the script at the current level and then suggest buying on dips. Kindly be alert if the stock price goes below 143 and stays at that level. Please get out of the stock if price closes below 132,. 

Note:

1.    Price stated here is of spot market

2.    Recommendations are valid till the stop loss is triggered

3.    Kindly note that make your cost your stop loss in favorable trade and then trail it as the price of the stock moves up to gain maximum profit.

 Contact me for strategic guidance to enter and exit the trade