In today’s briefing:
- Ramkrishna Forgings: Inventory Discrepancies Raise Concern Over Governance
- HZ IN: Operational Targets and Valuation Framework
Ramkrishna Forgings: Inventory Discrepancies Raise Concern Over Governance
- Ramkrishna Forgings (RK Forgings) recently reported discrepancies in its inventory during the annual physical verification for FY 2024.
- The company has engaged independent external agencies to conduct a joint fact-finding study, aiming to maintain transparency and accountability.
- Estimates suggest an adverse impact of 4-5% on the company’s net worth. While the impact on overall inventory is almost 10% of the total inventory, amounting to INR 120 crore
HZ IN: Operational Targets and Valuation Framework
- Hindustan Zinc’s Q4 FY25 PAT rose 47% YoY to Rs3,003 crore; EBITDA grew 32% YoY; zinc cost of production hit a 16-quarter low at $994/t.
- FY26 guidance targets 1.12 Mt mined metal, 700–710 MT silver, and zinc cost of production between $1,025–1,050/t, slightly higher due to ore grade normalization.
- HZL trades at ~21.5x P/E and ~12x EV/EBITDA, at a premium to some global peers, with valuations sensitive to commodity prices, cost trends, and execution on expansion plans.
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