Motilal Oswal - MOSL: Morning India (21/April/17)-1. Hindustan Zinc (Downgrading to Sell); 2. Sun TV; 3. Mind Tree; 4. Cyient; 5. Aviation

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Motilal Oswal

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MOSL: Morning India (21/April/17)-1. Hindustan Zinc (Downgrading to Sell); 2. Sun TV; 3. Mind Tree; 4. Cyient; 5. Aviation

â€‹MOrning India (21/April/17): 1. Hindustan Zinc (Downgrading to Sell); 2. Sun TV; 3. Mind Tree; 4. Cyient; 5. Aviation

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Todayâ€™s top research idea

â€‹Hindustan Zinc: Operating performance was a feast on best of volumes and LME; Downgrading to Sell due to rich valuations
Despite factoring in 10% higher LME (zinc USD2,800) and 6% higher USD/INR rate (68.6), the stock trades at close to its peak EV/EBITDA of 8.1x FY18E.
The stock has got re-rated on bullish outlook for zinc and high dividend payout. Thus, while we expect EBITDA to increase at a CAGR of 17% to INR133b over FY17-19E on higher average LME and higher volumes, at current valuations the stock provides limited support.
We value HZL at 6.5x FY18E EV/EBITDA at TP of INR235/sh. We downgrade the stock to Sell on rich valuation

Piping hot news

MPC Meeting minutes: RBI member wanted 25 bps rate hike in April policy

â€‹RBI Deputy Governor Viral Acharya said headline inflation is set to rebound from its recent lows due to the expected (and in the past month, realised) mean-reversion in food inflation, especially in vegetables.

21/04/2017 26 EN

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MOSL: Morning India (21/April/17)-1. Hindustan Zinc (Downgrading to Sell); 2. Sun TV; 3. Mind Tree; 4. Cyient; 5. Aviation

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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