Hind Zinc shines bright

Hind Zinc is amongst the top gainers of the day. The stock opened higher at Rs.127.90 and is currently at the intra day high levels of Rs.132. Volumes are up 1.5 times.

The stock is in the limelight today on hopes rising high after the Attorney General gave an opinion  stating that Hind Zinc shares can be sold in the open market and said that selling it in the open market would be good if the share fetches a good price. This makes logical sense but yet again, this is a policy decision and might take time. Last week there was news that share will be sold through e-auction route.

Our Editor, Mr.SP Tulsian is bullish about this development and if of the opinion that the residual stake of the Govt in the company will go to Sesa Sterlite which is the holding company. He says, “Even if you take the auction route or the valuation parameter, I do not think that this stake sale should really happen below Rs 160 per share. Share as such is ruling at lower end of its valuation or the price range, so it has room to go to the level of maybe Rs 136-138 in the near-term.”

The company is scheduled to announce its Q3 numbers on 17th Jan.