Daily Brief India: Hindustan Zinc, Tata Capital Limited, LG Electronics India, Ambuja Cements, Salzer Electronics and more

• Hindustan Zinc (HZ IN) has committed to a massive INR 30k−35k Crs (3.6−4.2 billion) expansion to double its metal production underpinned by record-low zinc costs and high silver contribution.
• This integrated, self-funded capacity doubling effort, coupled with aggressive decarbonization and the high-margin silver tailwind, fundamentally de-risks the long-term earnings trajectory.
• While the corporate restructuring remains an overhang, HZL’s strategic shift makes it a compelling, low-cost proxy for India’s industrial growth and the global silver bull cycle.

• Tata Capital Limited (TATACAP IN) IPO highlights strong branch growth and granular loan book, though new-to-credit exposure remains limited and underwriting largely product-driven.
• Weak sourcing disclosures beyond Home Loans raise concerns on DSA reliance, portfolio quality, and resilience during downturns, especially in competitive lending segments.
• Collections are highly digitized and analytics-driven, yet regulatory inspections reveal persistent compliance, governance, and risk management lapses across Tata Capital, TMFL, and TCHFL.

• LG Electronics (066570 KS) is looking to raise US$1.3bn via part-selling its stake in LG Electronics India.
• LG Electronics India (LGEI) was the market leader in India in major home appliances and consumer electronics (excluding mobile phones) in terms of volume, as per Redseer Report.
• We have looked at the company’s past performance in our previous note, in this note we talk about the RHP updates and refresh our peer comparison

• Ambuja Cement has crossed the 100 MTPA capacity mark and is executing a roadmap for 140 MTPA by FY28 while targeting a INR1,500 per tonne EBITDA by the same year.
• The integration of multiple recent acquisitions, including Orient, Sanghi, and Penna, is crucial; Q2FY26 results will offer the first look into how the new consolidated entity handles initial integration costs.
• While Q1 FY26 set a high baseline, investors should  anticipate sequential dip in Q2 margins, viewing it as a short-term integration blip against a decade-defining capacity and cost rationalisation strategy.

• Salzer Electronics is a well-established player in the Indian electrical components market, demonstrating a robust track record of revenue and net income growth. The company is capitalizing on favorable industry tailwinds, including infrastructure development and the push for energy efficiency.
• Strategic expansion into high-growth areas such as smart meters and electric vehicle (EV) chargers presents significant upside potential. These new ventures, coupled with a strong existing portfolio in switchgears and wires & cables, are expected to be key long-term growth drivers.
• A significant concern is the consistently negative operating and free cash flow over the past three years, primarily due to high working capital requirements to fund growth. Improving cash conversion and working capital management will be critical for sustainable value creation.

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