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4QFY2013 Result Update | Base Metals

April 25, 2013

Hindustan Zinc
Performance Highlights
Quarterly highlights (Standalone) Particulars (` cr) 4QFY13 Net sales EBITDA EBITDA margin (%) Adjusted PAT 3,850 2,116 55.0 2,183 4QFY12 3,094 1,659 53.6 1,421 % chg (yoy) 24.5 27.5 133bp 53.6 3QFY13 3,140 1,494 47.6 1,613 % chg (qoq) 22.6 41.6 738bp 35.4

BUY
CMP Target Price
Investment Period
Stock Info Sector Market Cap (` cr) Net Debt (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code Base Metals 50,176 (21,479) 1.0 147/107 134,070 2 19,407 5,916 HZNC.BO HZ@IN

`119 `145
12 months

Source: Company, Angel Research

Hindustan Zinc (HZL)s 4QFY2013 results were above our expectations due to higher-than-expected concentrate sales. Maintain Buy. Strong growth in silver volumes: HZLs net sales increased by 24.5% yoy to `3,850cr (above our estimate of `3,091cr), mainly due to increased sales volumes of silver and higher rupee realizations. Net sales were above our estimates due to higher-than-expected metal-in-concentrate (MIC) sales. Refined zinc production volumes, however, declined 4.0% yoy to 182kt while refined silver production volumes grew 33.0% yoy to 117kt. EBITDA up 27.5% yoy: EBITDA margin expanded by 133bp yoy to 55.0%. Cost of production increased by 8.0% yoy to `44,901/tonne due to higher strip ratio at Rampura Agucha and lower acid credits, partially offset by lower power costs. The EBITDA increased by 27.5% yoy to `2,116cr in line with increase in net sales. Lower depreciation and taxes boosts PAT: The companys other income rose by 8.1% yoy to `412cr while depreciation decreased by 27.0% yoy to `122cr. The tax rate was also lower at 8.9% in 4QFY2013 (vs 24.1% in 4QFY2012). Hence, the adjusted net profit grew by 53.6% yoy to `2,183cr. Outlook and valuation: With a cash-rich balance sheet and strong growth in the production of zinc, lead and silver over FY2013-15, we maintain our positive stance on HZL. While we expect earnings growth to remain flat in FY2014, we expect higher earnings growth in FY2015 on the back of improvement in both, realizations as well as volumes. HZL is currently trading at inexpensive valuations of 3.5x and 2.4x FY2014E and FY2015E EV/EBITDA, respectively. Valuing the stock at 4.0x FY2015EV/EBITDA, we recommend Buy on HZL with a target price of `145. Key financials (Standalone)
Y/E March (` cr) Net sales % chg Net profit % chg EPS (`) EBITDA margin (%) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 64.9 2.0 1.5 31.6

Abs. (%) Sensex Hindustan Zinc

3m (3.5) (7.8)

1yr 13.2 (5.6)

3yr 9.7 (2.4)

FY2012 11,255 12.1 5,569 13.2 13.1 52.6 9.1 1.9 22.4 21.2 2.9 5.5

FY2013E 12,526 11.3 6,917 24.2 16.3 50.4 7.3 1.6 23.3 19.0 2.1 4.2

FY2014E 12,358 (1.3) 6,778 (2.0) 16.0 51.4 7.4 1.3 19.4 16.2 1.8 3.5

FY2015E 13,659 10.5 7,438 9.7 17.6 51.6 6.8 1.2 18.4 15.6 1.3 2.4

Bhavesh Chauhan
Tel: 022- 39357800 Ext: 6821 Bhaveshu.chauhan@angelbroking.com

Vinay Rachh
Tel: 022- 39357800 Ext: 6841 Vinay.rachh@angelbroking.com

Please refer to important disclosures at the end of this report

Hindustan Zinc | 4QFY2013 Result Update

Exhibit 1: 4QFY1013 Performance (Standalone)


(` cr) Net sales Mining and manufacturing expenses % of Net sales Mining royalty % of Net sales Staff cost % of Net sales Admin, selling and others % of Net sales Total expenditure % of Net sales Other operating income EBIDTA % of Net sales Interest Depreciation Other income Exceptional items Profit before tax % of Net sales Provision for tax % of PBT Profit after tax % of Net sales Adjusted net profit
Source: Company, Angel Research

4QFY13 3,850 1,168 30.3 244 6.3 177 4.6 204 5.3 1,793 46.6 58 2,116 55.0 11 122 412 18 2,378 61.7 212 8.9 2,166 56.3 2,183

4QFY12 3,094 973 31.5 229 7.4 144 4.7 129 4.2 1,476 47.7 41 1,659 53.6 2 167 381 8 1,862 60.2 449 24.1 1,413 45.7 1,421

yoy % 24.5 20.0 6.5 22.4 58.3 21.5 40.7 27.5 351.3 (27.0) 8.1 27.7 (52.9) 53.3 53.6

3QFY13 3,140 1,142 36.4 269 8.6 169 5.4 104 3.3 1,684 53.6 37.6 1,494 47.6 7 177 506 0 1,816 57.8 203 11.2 1,613 51.3 1,613

qoq % 22.6 2.2 (9.2) 4.5 97.3 6.5 55.3 41.6 44.8 (31.2) (18.7) 31.0 4.3 34.3 35.4

FY2013 12,526 3,450 27.5 920 7.3 650 5.2 518 4.1 5,538 44.2 174 6,482 51.7 29 647 2,032 18 7,820 62.4 921 11.8 6,899 55.1 6,917

FY2012 11,255 3,230 28.7 838 7.4 535 4.8 421 3.7 5,024 44.6 150 6,069 53.9 14 611 1,543 43 6,945 61.7 1,419 20.4 5,526 49.1 5,569

yoy % 11.3 6.8 9.8 21.6 23.1 10.2 16.0 6.8 108.6 6.0 31.7 12.6 (35.1) 24.9 24.2

Exhibit 2: Actual vs Estimates

(` cr) Net Sales EBITDA EBITDA margin (%) Adjusted PAT


Source: Company, Angel Research

Actual 3,850 2,116 55.0 2,183

Estimates 3,091 1,746 56.5 1,663

Variation (%) 24.6 21.2 (152)bp 31.3

Strong growth in silver volumes


For 4QFY2013, HZLs net sales increased by 24.5% yoy to `3,850cr (above our

estimate of `3,091cr), mainly due to increased sales volumes of silver and higher rupee realizations. Zinc production volumes however declined 4.0% yoy to 182kt, while silver production volumes grew 33.0% yoy to 117kt due to higher production from Sindesur Khurd mine and new Dariba lead and silver capacities.

April 25, 2013

Hindustan Zinc | 4QFY2013 Result Update

Exhibit 3: Net sales rose by 24.5% yoy


4,500 4,000 3,500 3,000 3,197 2,821 2,593 2,747 3,094 2,713 2,822 3,140 3,850 130 110 90

(` cr)

2,000 1,500 1,000 500 0 4QFY11 2QFY12 4QFY12 2QFY13 Net sales yoy growth - RHS 4QFY13

50 30 10 (10)

Source: Company, Angel Research

EBITDA increases 27.5% yoy


The EBITDA margin contracted by 133bp yoy to 55.0% mainly due to increase in sales. The cost of production increased 8.0% yoy to `44,901/tonne due to higher strip ratio at Rampura Agucha and lower acid credits, which were partially offset by lower power costs. Mining royalty as a percentage to sales declined to 6.3% compared to 7.4% in 4QFY2012 and other operating income also increased by 40.7% yoy to `58cr. The EBITDA increased 27.5% yoy to `2,116cr, in line with increase in net sales.

Lower depreciation and taxes boosts PAT


The other income rose by 8.1% yoy to `412cr while depreciation decreased by 27.0% yoy to `122cr due to write-back related to sale of some assets. The tax rate was also lower at 8.9% in 4QFY2013 (24.1% in 4QFY2012). There was an exceptional item of VRS of `18cr and consequently, the adjusted net profit grew by 53.6% yoy to `2,183cr (above our estimate of `1,663cr). Exhibit 4: EBITDA and EBITDA margin trend
2,400 2,100 1,800 1,500 1,969 1,659 1,592 1,465 1,402 1,429 1,447 1,494 2,116 80

Exhibit 5: Net profit and net profit margin trend


2,400 2,100 60 1,800 1,500 1,771 1,499 1,369 1,280 1,421 1,581 2,183 70 60 1,544 1,613 50 40 30 20 10 0 4QFY11 2QFY12 4QFY12 2QFY13 4QFY13 Net profit (LHS) Net profit margins (RHS)

( ` cr)

( ` cr)

(%)

1,200 900 600 300 0 4QFY11 2QFY12 4QFY12 2QFY13 4QFY13 EBITDA (LHS) EBITDA margins (RHS)

40

900 20 600 300 0 0

Source: Company, Angel Research

Source: Company, Angel Research

April 25, 2013

(%)

1,200

(%)

2,500

70

Hindustan Zinc | 4QFY2013 Result Update

Reserves and Resources continue to rise


During FY2013, the company added 24.6mn tonne to its reserves and resources, prior to a depletion of 8.6mn tonne. As on March 31, 2013, its total reserves and resources stood at 348.3mn tonne containing 35.1mn tonne of zinc-lead metal and 910.0mn ounces of silver which implies a mine life of over 25 years.

Investment arguments
Mining in Kayar could be the next phase of growth
Since the expansion at Sindesur Khurd is complete, HZL has commenced work at its underground Kayar mine, which has 11mn tonne of high-grade reserves (10-12% zinc content). The company expects to increase its capacity from 1.0mn tonne to 1.2mn tonne. Moreover, given the cash-rich balance sheet, HZL is actively exploring greenfield projects through prospecting licenses and mining lease projects across different states.

Current zinc prices near marginal cost of production


At current levels of ~US$1,900/tonne, zinc prices stand near marginal cost of production for several zinc producers globally. Hence, we believe that the probability of a further decline in zinc prices from the current levels remains muted. Further, over the next 3-5 years, several zinc mines are expected to be exhausted; hence, production is likely to suffer. This should support zinc prices over the medium term in our view.

April 25, 2013

Hindustan Zinc | 4QFY2013 Result Update

Outlook and Valuation


With cash-rich balance sheet and strong production growth of zinc, lead and silver over FY2013-15, we maintain our positive stance on HZL. While we expect earnings growth to remain flat in FY2014, we expect it to be higher in FY2015 on the back of improvement in both, realizations as well as volumes. HZL is currently trading at inexpensive valuations of 3.5x and 2.4x FY2014E and FY2015E EV/EBITDA, respectively. Valuing the stock at 4.0x FY2015E EV/EBITDA, we recommend Buy on HZL with a target price of `145.

Exhibit 6: Key assumptions


LME prices (US$/tonne) Zinc Lead Silver (`/kg) Sales volume (tonne) Zinc metal Lead metal Integrated silver Source: Angel Research FY2014E FY2015E

2,000 2,026 40,000 703,200 138,750 330,000

2,100 2,076 40,000 747,150 148,000 360,000

Exhibit 7: EPS Angel forecast vs consensus


Year (%) FY2013E FY2014E
Source: Bloomberg, Angel Research

Angel forecast
16.0 17.6

Bloomberg consensus 16.2 16.8

Variation (%)
(1.0) 4.8

Exhibit 8: EV/EBITDA band


70,000 60,000 50,000

(` cr)

40,000 30,000 20,000 10,000 0

Dec-06

Mar-08

Aug-08

Dec-11

Apr-05

Apr-10

Jul-06

Jul-11

Nov-04

Nov-09

May-07

2x
Source: Bloomberg, Angel Research

4x

6x

8x

10x

April 25, 2013

May-12

Mar-13

Oct-07

Feb-06

Feb-11

Sep-05

Sep-10

Oct-12

Jun-04

Jan-04

Jan-09

Jun-09

Hindustan Zinc | 4QFY2013 Result Update

Exhibit 9: P/E band


250 200 150

(` )
100 50 0

Oct-07

Feb-06

Nov-04

Nov-09

Sep-05

Feb-11

Sep-10

May-07

May-12

Dec-06

Aug-08

Dec-11

Oct-12 Oct-12

Jun-04

Jan-04

Jan-09

Jun-09

Apr-05

Apr-10

Jul-06

Jul-11

2.0x
Source: Bloomberg, Angel Research

6.0x

Mar-08

10.0x

14.0x

Exhibit 10: P/BV band


500 450 400 350 300 250 200 150 100 50 0

(` )

Dec-06

Aug-08

Mar-08

Dec-11

Apr-05

Apr-10

Jul-06

Jul-11

Nov-04

May-07

Nov-09

0.5x
Source: Bloomberg, Angel Research

2.0x

3.5x

5.0x

Exhibit 11: Recommendation summary


Company Hindalco Nalco Sterlite HZL CMP Target Price (`) 98 35 90 119 (`) - Neutral 145 Buy Reco. Mcap Upside (` cr) 9,071 50,176 (%) 9 22 P/E (x) 7.1 10.9 4.6 7.4 6.2 10.7 4.1 6.8 P/BV (x) 0.5 0.7 0.5
1.3

EV/EBITDA (x) 0.5 0.7 0.5


1.2

RoE (%) 7.6 6.8 12.1


19.4

RoCE (%) 8.1 6.7 5.8 4.8 10.0


16.2

FY14E FY15E FY14E FY15E

FY14E FY15E FY14E FY15E FY14E FY15E 6.1 4.0 2.0


3.5

- Neutral 18,841 98 Accum. 30,364

5.3 3.9 1.6


2.4

May-12

12.1
18.4

Source: Company, Angel Research

Company background
Incorporated in 1966, HZL, a subsidiary of Sterlite Industries, is a vertically integrated company with its mining and smelting operations located mainly in Rajasthan and Andhra Pradesh. HZLs current zinc reserves stand at 34.1mn tonne with a production capacity of 1.1mn tonne of zinc p.a., indicating a mine life of 31 years. HZL currently operates two underground mines, namely Sindesar Khurd and Rajpura Dariba, and one open cast mine - Rampura Agucha.

April 25, 2013

Mar-13

Feb-06

Oct-07

Sep-05

Sep-10

Feb-11

Jun-04

Jan-04

Jan-09

Jun-09

Mar-13

6.0 4.7 9.9


15.6

Hindustan Zinc | 4QFY2013 Result Update

Profit & loss statement( Standalone)


Y/E March (` cr) Net sales Other operating income Total operating income % chg Total expenditure Net raw materials Other Mfg. costs Personnel Other EBITDA % chg (% of Net sales) Depreciation EBIT % chg (% of Net sales) Interest & other charges Other income (% of PBT) Share in profit of asso. Recurring PBT % chg Extraordinary inc/(exp.) PBT (reported) Tax (% of PBT) PAT (reported) ADJ. PAT % chg (% of Net Sales) Basic EPS (`) Fully Diluted EPS (`) % chg
previous year numbers

FY2010 8,017 122 8,139 43.3 3,347 1,961 613 457 316 4,792 75.3 58.3 334 4,458 82.0 55.6 44 600 12.0 5,014 49.3 5,014 973 19.4 4,041 4,041 48.2 49.7 9.6 9.6 48.2

FY2011 10,039 10,039 23.3 4,431 14 803 511 3,104 5,608 17.0 55.9 475 5,133 15.1 51.1 18 866 14.5 5,981 19.3 21 5,960 1,059 17.8 4,900 4,922 21.8 49.0 11.6 11.6 21.3

FY2012 11,255 150 11,405 13.6 5,336 312 838 535 3,651 6,069 8.2 52.6 611 5,459 6.3 48.5 14 1,543 22.1 6,988 16.8 43 6,945 1,419 20.4 5,526 5,569 13.2 48.8 13.1 13.1 12.8

FY2013 12,526 174 12,700 11.4 6,218 681 920 650 3,968 6,482 6.8 50.4 647 5,835 6.9 46.6 29 2,032 25.9 7,838 12.2 18 7,820 921 11.8 6,899 6,917 24.2 54.5 16.3 16.3 24.9

FY2014E 12,358 192 12,549 (1.2) 6,006 309 897 721 4,078 6,544 1.0 51.4 712 5,832 (0.0) 47.2 12 2,154 27.0 7,974 1.7 7,974 1,196 15.0 6,778 6,778 (2.0) 54.0 16.0 16.0 (1.8)

FY2015E 13,659 211 13,870 10.5 6,606 328 978 793 4,508 7,264 11.0 51.6 783 6,481 11.1 47.4 14 2,283 26.1 8,750 9.7 8,750 1,313 15.0 7,438 7,438 9.7 53.6 17.6 17.6 9.7

Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable with

April 25, 2013

Hindustan Zinc | 4QFY2013 Result Update

Balance sheet (Standalone)

Y/E March (` cr) SOURCES OF FUNDS Equity Share Capital Reserves& Surplus Shareholders Funds Total Loans Deferred Tax Liability Other long term liabilities Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Investments Long term loans and adv. Other Non-current assets Current Assets Cash Loans & Advances Other Current liabilities Net Current Assets Total Assets

FY2010 423 17,701 18,124 60 711 18,896 8,241 2,077 6,164 1,113 10,949 1,995 928 457 611 1,326 669 18,896

FY2011 845 21,688 22,533 0.4 945 24 23,502 9,879 2,624 7,254 595 9,335 617 130 7,123 5,633 286 1,204 1,551 5,572 23,502

FY2012 845 26,036 26,881 0.4 1,109 17 28,008 11,658 3,145 8,513 445 12,695 628 164 6,979 5,255 270 1,454 1,415 5,564 28,008

FY2013E 845 31,403 32,248 0.4 1,109 17 33,375 13,858 3,792 10,066 145 12,695 628 164 12,436 11,111 270 1,055 2,759 9,678 33,375

FY2014E 845 36,648 37,493 0.4 1,109 17 38,620 15,558 4,504 11,054 95 12,695 628 164 16,722 15,415 270 1,037 2,738 13,985 38,620

FY2015E 845 42,554 43,399 0.4 1,109 17 44,525 17,258 5,287 11,971 45 12,695 628 164 21,820 20,470 270 1,080 2,797 19,023 44,525

Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable with previous year numbers

April 25, 2013

Hindustan Zinc | 4QFY2013 Result Update

Cash flow statement( Standalone)


Y/E March (` cr) Profit before tax Depreciation Change in working capital Less: Other income Direct taxes paid Cash flow from operations (Inc.)/ Dec. in net fixed assets (Inc.)/ Dec. in investments (Inc.)/ Dec. in loans and adv. Other income Cash flow from investing Inc./(Dec.) in loans Dividend paid Others Cash flow from financing Inc./(Dec.) in cash Opening cash bal. Closing cash bal.
previous year numbers

FY2010 FY2011 FY2012 FY2013E FY2014E FY2015E 5,014 335 173 (563) 785 4,173 (3,922) (96) 5,960 475 (239) 1,116 4,244 6,945 611 (61) 1,502 4,492 7,820 647 1,741 921 9,288 (1,900) (1,900) 1,532 (1,532) 5,855 29 11,111 7,974 712 (2) 1,196 7,487 (1,650) (1,650) 1,532 (1,532) 4,305 11,111 15,415 8,750 783 16 1,313 8,237 (1,650) (1,650) 1,532 (1,532) 5,054 15,415 20,470

(835) (1,501)

(2,247) (1,446) (1,668) 1,870 (2,455) 28 38 624 1,228 14 (210) 277 29

2,288 (4,082) 43 198 33 (187) 8 2,719 928 (60) 296 8 250 28 277

(3,977) (3,631) (3,461)

(363) (1,242)

Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable with

April 25, 2013

Hindustan Zinc | 4QFY2013 Result Update

Key ratios (Standalone)


Y/E March Valuation ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV/Total assets Per share data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book value DuPont analysis EBIT margin Tax retention ratio (%) Asset turnover (x) RoIC (Post-tax) Cost of debt (post tax) Leverage (x) Operating RoE Returns (%) RoCE (Pre-tax) Angel RoIC (pre-tax) RoE Turnover ratios (x) Asset turnover (gross block) Inventory (days) Receivables (days) Payables (days) WC cycle (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest coverage (0.7) (2.5) 101.5 (0.7) (2.7) 280.8 (0.7) (3.0) 391.3 (0.7) (3.7) 200.5 (0.7) (4.3) 471.9 (0.8) (4.6) 474.5 1.1 23 7 46 (4) 1.1 22 7 39 (6) 1.0 25 9 36 4 1.0 25 9 36 (16) 0.8 25 9 36 (42) 0.8 25 8 36 (38) 26.4 88.5 24.9 24.2 74.3 24.1 21.2 62.3 22.4 19.0 61.4 23.3 16.2 58.9 19.4 15.6 59.7 18.4 55.6 80.6 1.3 59.3 59.3 51.1 82.2 1.3 54.4 54.4 48.5 79.6 1.2 47.5 47.5 46.6 88.2 1.3 53.3 53.3 47.2 85.0 1.3 50.2 50.2 47.4 85.0 1.3 51.2 51.2 9.6 9.6 10.4 6.0 42.9 11.6 11.6 12.8 0.7 53.3 13.1 13.1 14.6 2.4 63.6 16.3 16.3 17.9 3.1 76.3 16.0 16.0 17.7 3.1 88.7 17.6 17.6 19.5 3.1 102.7 12.4 11.5 2.8 5.0 4.8 8.2 2.0 10.3 9.3 2.2 0.6 3.5 6.3 1.5 9.1 8.1 1.9 2.0 2.9 5.5 1.2 7.3 6.6 1.6 2.6 2.1 4.2 0.8 7.4 6.7 1.3 2.6 1.8 3.5 0.6 6.8 6.1 1.2 2.6 1.3 2.4 0.4 FY2010 FY2011 FY2012 FY2013E FY2014E FY2015E

Note: Some of the figures from FY2011 onwards are reclassified; hence some ratios may not be comparable with previous year ratios

April 25, 2013

10

Hindustan Zinc | 4QFY2013 Result Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

Hindustan Zinc No No No No

Note: We have not considered any Exposure below `1 lakh for Angel, its Group companies and Directors.

Ratings (Returns) :

Buy (> 15%) Reduce (-5% to -15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

April 25, 2013

11