1QFY2012 Result Update | Base Metals

July 21, 2011

Hindustan Zinc
Performance Highlights

ACCUMULATE
CMP Target Price
1QFY11 % chg (yoy) 1,951 1,022 52.4 891 44.6 55.8 406bp 67.8 4QFY11 % chg (qoq) 3,197 1,969 61.6 1,771 (11.8) (19.1) (514)bp (15.6)

`138 `156

Particulars (` cr) Net sales EBITDA EBITDA margin (%) Net profit

1QFY12 2,821 1,592 56.4 1,495

Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code Base Metals 58,393 1.0 155/98 113092 2 18,436 5,542 HZNC.BO HZ@IN

Source: Company, Angel Research

For 1QFY2012, Hindustan Zincs (HZL) net revenue at `2,821cr was marginally lower than our estimate of `2,941cr. However, net profit at `1,495cr was in-line with our estimate of `1,532cr. We recommend Accumulate on the stock. Strong performance continues in 1QFY2012: HZLs net revenue increased by 44.6% yoy to `2,821cr on account of higher sales volume and realisation. Despite the shutdown at Rampura Agucha mine during the quarter, zinc volumes grew by 16.5% yoy to 192kt and lead sales volumes grew by 4.5% yoy to 15kt. Silver sales volume increased by 14.2% yoy to 40,908kg and lead concentrate sales stood at 10,086dmt. Average zinc, lead and silver realisation increased by 11.6%, 25.5% and 98.0% yoy, respectively. On the operating front, staff cost declined by 14.0% yoy to `127cr, which led to EBITDA margin expanding by 406bp yoy to 56.4%. Thus, EBITDA grew by 55.8% yoy to `1,592cr. Further, other income was higher by 124.3% yoy to `355cr, which resulted in net profit growing by 67.8% yoy to `1,495cr despite depreciation increasing by 19.8% yoy to `135cr and higher tax rate at 17.1%. Outlook and valuation: Currently, the stock is trading at 5.9x FY2012E and 4.4x FY2013E EV/EBITDA. We expect HZL to benefit from the expansion of zinc-lead smelting capacity during FY201213. Furthermore, HZLs expansion in silver-rich Sindesar Khurd mine should result in robust bottom-line growth. HZL had a huge cash balance of `15,720cr as of June 30, 2011 (`37 per share). We recommend Accumulate on the stock with a target price of `156. Key financials
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 1.9 1.5 31.7

Abs. (%) Sensex Hindustan Zinc

3m (5.9)

1yr 2.6

3yr 33.1 158.4

(9.0) 36.7

FY2010 8,017 41.1 4,041 48.2 9.6 58.3 14.4 3.2 24.9 26.4 5.8 10.0

FY2011 9,912 23.6 4,900 21.3 11.6 55.4 11.9 2.6 24.1 24.3 4.4 7.9

FY2012E 11,538 16.4 5,870 19.8 13.9 56.4 9.9 2.1 23.2 23.3 3.3 5.9

FY2013E 12,679 9.9 6,512 10.9 15.4 56.8 9.0 1.7 21.0 21.2 2.5 4.4

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

Pooja Jain
Tel: 022- 39357800 Ext: 6839 pooja.j@angelbroking.com

Please refer to important disclosures at the end of this report

Hindustan Zinc | 1QFY2012 Result Update

Exhibit 1: 1QFY2012 performance

(` cr) Net sales Mining and mfg. expenses % of Net sales Mining royalty % of Net sales Staff cost % of Net sales Admin and selling % of Net sales Total expenditure % of Net sales Operating income EBITDA % margin Interest Depreciation Other income Exceptional items Profit before tax % of Net sales Provision for tax % of PBT Profit after tax % of Net sales Source: Company, Angel Research 1QFY12 2,821 854 30.3 194 6.9 127 4.5 80 2.8 1,255 44.5 25.7 1,592 56.4 6 135 355 (4) 1,802 63.9 307 17.1 1,495 53.0 1QFY11 1,951 570 29.2 155 8.0 148 7.6 78 4.0 952 48.8 22.6 1,022 52.4 7 112 158 1,061 54.4 170 16.1 891 45.7 67.8 80.3 69.8 (0.9) 19.8 124.3 13.8 55.8 31.9 2.7 (14.0) 24.8 yoy % 44.6 49.7 FY2011 9,912 2,754 27.8 803 8.1 511 5.2 349 3.5 4,416 44.6 127.2 5,623 56.7 19 475 852 21 5,960 60.1 1,059 17.8 4,900 49.4 FY2010 8,017 1,961 24.5 613 7.6 457 5.7 316 3.9 3,347 41.7 122.0 4,792 59.8 44 334 600 0 5,014 62.5 973 19.4 4,041 50.4 21.3 8.9 18.9 (55.8) 42.0 41.9 4.3 17.3 32.0 10.4 11.7 31.1 yoy % 23.6 40.4

Exhibit 2: 1QFY2012 Actual vs. Angel estimates

(` cr) Net sales EBITDA EBITDA margin (%) PBT PAT
Source: Company, Angel Research

Actual 2,821 1,592 56.4 1,802 1,495

Estimates 2,941 1,717 58.4 1,891 1,532

chg (%) (4.1) (7.3) (193)bp (4.7) (2.4)

Higher sales volume and realisations aid top-line growth

During the quarter, HZL undertook unplanned shutdown at Rampura Agucha mine; however, higher production at Sindesar Khurd mine led to mined zinc and lead production increasing by 3.1% yoy and 7.3% yoy to 169,226 tonnes and 19,177 tonnes, respectively. Zinc metal sales volume grew by 16.5% yoy to 192kt on account of increased contribution from Dariba Hydro zinc smelter and lead metal sales volume increased by 4.5% yoy to 15kt. Saleable silver production grew by 6.5% yoy to 39,586kg and silver sales volumes grew by 14.2% yoy to 40,908kg. Lead concentrate sales for the quarter stood at 10,086dmt.

July 21, 2011

Hindustan Zinc | 1QFY2012 Result Update

Exhibit 3: Zinc metal sales volume grew by 16.5% yoy

210,000 180,000 150,000 3,000 2,500

Exhibit 4: Lead metal sales volume grew by 4.5% yoy

25,000 20,000 3,500 3,000 2,500

(US $/tonne)

(tonnes)

(tonnes)

120,000 90,000 60,000 30,000 0 1QFY09 4QFY09 3QFY10 2QFY11 1QFY12 Volume (LHS) Realisation (RHS)

15,000 10,000 5,000 0 1QFY09 4QFY09 3QFY10 2QFY11 1QFY12 Volume (LHS) Realisation (RHS)

1,500 1,000 500 0

2,000 1,500 1,000 500 0

Source: Company, Angel Research

Source: Company, Angel Research

In 1QFY2012, average silver realisation increased substantially by 98.0% yoy to ~`55,758/kg. On a yoy basis, zinc and lead realisations registered growth of 11.6% and 25.5% to US$2,392/tonne and US$2,827/tonne, respectively. Thus, net revenue grew by 44.6% yoy to `2,821cr due to higher sales volume and realisations.

Operating performance
During the quarter, staff cost declined by 14.0% yoy to `127cr, which led to EBITDA margin expanding by 406bp yoy to 56.4%. Thus, EBITDA grew by 55.8% yoy to `1,592cr. Further, other income was higher by 124.3% yoy to `355cr, which resulted in net profit growing by 67.8% yoy to `1,495cr despite depreciation increasing by 19.8% yoy to `135cr and higher tax rate at 17.1%.

Exhibit 5: EBITDA and EBITDA margin trend

2,100 1,800 1,500 60 80

Exhibit 6: Net profit and net margin trend

2,100 1,800 1,500 60 50 40

(` cr)

(` cr)

(%)

900 600 300 0 1QFY09 3QFY09 1QFY10 3QFY10 1QFY11 3QFY11 1QFY12 EBITDA (LHS) EBITDA margins (RHS)

900 600 300

20 10 0 1QFY09 3QFY09 1QFY10 3QFY10 1QFY11 3QFY11 1QFY12 Net profit (LHS) Net profit margins (RHS)

20 0

Source: Company, Angel Research

Source: Company, Angel Research

Expansion projects
The 100ktpa lead smelter at Rajpura Dariba has been commissioned with saleable lead production expected to start operation by mid-2QFY2012E. The expansion of the 273MW wind power plant is on scheduled and expected to be commissioned in 2QFY2012.

July 21, 2011

(%)

1,200

40

1,200

30

(US $/tonne)

2,000

Hindustan Zinc | 1QFY2012 Result Update

Outlook
Global zinc metal market likely to remain in surplus
As per ILZSG, global zinc usage is expected to grow by 6.3% to 13.4mn tonnes in CY2011. Refined zinc production is expected to grow by 5.6% to 13.6mn tonnes in CY2011. Hence, global zinc metal supply is likely to remain in surplus for the fifth successive year by over 200,000 tonnes in CY2011E.

Exhibit 7: Zinc prices and inventory levels

5,400 4,500
(US $/tonne)

3,600 2,700 1,800 900 0 Apr-05 Jul-06 Oct-07 Jan-09 Apr-10

1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 Jul-11

Inventory (RHS)
Source: Bloomberg, Angel Research

Zinc prices (LHS)

Lead Metal surplus at 123,000 tonnes

As per ILZSG, global lead usage is expected to grow by 5.5% yoy to 10.0mn tonnes in CY2011E. However, lead production is also expected to grow by 6.1% yoy to 10.2mn tonnes. Hence, lead metal is expected to remain in surplus by 123,000 tonnes in CY2011E.

Exhibit 8: Lead prices and inventory levels

4,500 3,600
(US $/tonne)

350,000 300,000 250,000

(tonnes)

2,700 1,800 900 0 Apr-05 Jul-06 Oct-07 Jan-09 Apr-10

200,000 150,000 100,000 50,000 0 Jul-11

Inventory (RHS)
Source: Bloomberg, Angel Research

Lead prices (LHS)

July 21, 2011

(tonnes)

Hindustan Zinc | 1QFY2012 Result Update

Valuation
Currently, the stock is trading at 5.9x FY2012E and 4.4x FY2013E EV/EBITDA. We expect HZL to benefit from the expansion of zinc-lead smelting capacity during FY201213. Furthermore, HZLs expansion in silver-rich Sindesar Khurd mine should result in robust bottom-line growth since there are no additional direct costs involved in silver mining. HZL had a huge cash balance of `15,720cr as of June 30, 2011 (`37 per share). We recommend Accumulate on the stock.

Exhibit 9: Key assumptions

Earlier LME prices (US$/tonne) Zinc Lead Silver (`/kg) Sales volume (tonnes) Zinc metal Lead metal Silver Source: Angel Research 747,150 86,850 225,000 830,655 91,193 225,000 738,360 86,850 225,000 830,655 91,193 225,001 FY12E 2,300 2,500 60,000 FY13E 2,300 2,500 60,000 Revised FY12E 2,300 2,500 55,000 FY13E 2,300 2,500 55,000

We have only marginally tweaked our estimates for FY2012 and FY2013 since 1QFY2012 results were broadly in line with our estimates.

Exhibit 10: Change in estimates

(` cr) Net sales EBITDA EBITDA margin (%) PBT Net income Net margin (%)
Source: Company, Angel Research

Earlier estimates FY12E 11,748 6,775 57.7 7,316 5,999 51.1 FY13E 12,560 7,291 58.0 7,868 6,452 51.4

Revised estimates FY12E 11,538 6,636 57.5 7,158 5,870 50.9 FY13E 12,679 7,358 58.0 7,941 6,512 51.4

Upgrade/(downgrade) (%) FY12E (1.8) (2.1) (16)bp (2.1) (2.1) (19)bps FY13E 0.9 0.9 (1)bp 0.9 0.9 (1)bps

Exhibit 11: EPS Angel forecast vs. consensus

Year (%) FY2012E FY2013E
Source: Bloomberg, Angel Research

Angel forecast 13.9 15.4

Bloomberg consensus 14.1 15.6

Variation (%) (1.5) (1.2)

July 21, 2011

Hindustan Zinc | 1QFY2012 Result Update

Exhibit 12: EV/EBITDA band

80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 (10,000) Apr-03 Apr-04 Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11
Source: Bloomberg, Angel Research

10.0x 8.0x 6.0x 4.0x 2.0x

Exhibit 13: P/E band

250 200 150
(`)

(` cr)

14.0x

10.0x 6.0x 2.0x Apr-05 Apr-07 Apr-09 Apr-11

100 50 0 Apr-03

Source: Bloomberg, Angel Research

Exhibit 14: P/BV band

400 350 300 250
(`)

5.0x

3.5x

200 150 100 50 0 Apr-03 Apr-04 Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11 0.5x 2.0x

Source: Bloomberg, Angel Research

July 21, 2011

Hindustan Zinc | 1QFY2012 Result Update

Exhibit 15: Recommendation summary

Company CMP Target Price (`) (`) 242 77 216 Buy Neutral Buy 177 80 166 138 Reco. Mcap (` cr) 34,041 20,720 55,854 58,393 Upside (%) 36.7 30.1 13.2 P/E (x) 11.1 15.8 9.6 9.9 7.0 14.0 7.6 9.0 P/BV (x) 1.3 2.1 1.2 2.1 1.1 2.1 1.0 1.7 EV/EBITDA (x) 6.9 9.6 7.3 5.9 5.4 8.2 4.5 4.4 RoE (%) 12.2 13.3 13.2 23.2 16.9 15.2 14.3 21.0 RoCE (%) 9.9 13.8 11.1 23.3 12.8 16.4 14.5 21.2 FY12E FY13E FY12E FY13E FY12E FY13E FY12E FY13E FY12E FY13E

Hindalco Nalco Sterlite HZL

156 Accumulate

Source: Company, Angel Research

July 21, 2011

Hindustan Zinc | 1QFY2012 Result Update

Profit & loss statement

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 % EBITDA margin Depreciation EBIT % chg (% of Net sales) Interest & other charges Other income (% of PBT) Share in profit of associates Recurring PBT % chg Extraordinary inc/(expense) PBT (reported) Tax (% of PBT) PAT (reported) Add: Share of earnings of asso. Less: Minority interest Extra. expense/(inc.) Net income (reported) Adj. net income % chg (% of Net sales) Basic EPS (`) Fully Diluted EPS (`) % chg 7,878 (8.0) 2,499 1,352 511 308 328 5,378 (16.1) 68.3 221 5,158 (17.5) 65.5 24 852 14.2 5,985 (7.3) 5,985 1,589 26.6 4,396 4,396 4,396 (1.0) 55.8 10.4 10.4 (1.0) 5,680 (27.9) 2,946 1,906 364 365 311 2,734 (49.2) 48.1 285 2,449 (52.5) 43.1 22 931 27.7 3,358 (43.9) 3,358 631 18.8 2,728 2,728 2,728 (38.0) 48.0 6.5 6.5 (38.0) FY2008 FY2009 FY2010 FY2011 7,878 5,680 8,017 122.0 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 4,041 48.2 49.7 9.6 9.6 48.2 9,912 127 10,039 23.3 4,416 2,754 803 511 349 5,623 17.3 55.4 475 5,148 15.5 51.9 19 852 14.2 5,981 19.3 21.2 5,960 1,059 17.8 4,900 4,900 4,900 21.3 48.8 11.6 11.6 21.3 FY2012E 11,538 128 11,666 16.2 5,030 3,115 935 577 404 6,636 18.0 56.4 519 6,116 18.8 53.0 20 1,061 14.8 7,158 19.7 7,158 1,289 18.0 5,870 5,870 5,870 19.8 50.3 13.9 13.9 19.8 FY2013E 12,679 157 12,835 10.0 5,477 3,423 1,027 621 406 7,358 10.9 56.8 571 6,788 11.0 53.5 13 1,166 14.7 7,941 10.9 7,941 1,429 18.0 6,512 6,512 6,512 10.9 50.7 15.4 15.4 10.9

July 21, 2011

Hindustan Zinc | 1QFY2012 Result Update

Balance sheet
Y/E March (` cr) SOURCES OF FUNDS Equity share capital Reserves & surplus Shareholders funds Share warrants Minority interest Total loans Deferred tax liability Total liabilities APPLICATION OF FUNDS Gross block Less: Acc. depreciation Net Block Capital work-in-Progress Goodwill Investments Current assets Cash Loans & advances Other Current liabilities Net current assets Mis. exp. not written off Total assets 5,182 1,485 3,697 465 6,332 2,712 1,363 384 965 898 1,813 12,308 5,856 1,751 4,105 1,108 6,929 3,784 2,719 313 751 1,001 2,783 14,925 8,241 2,077 6,164 1,113 10,949 1,995 928 457 611 1,326 669 18,896 9,802 2,548 7,254 875 9,335 7,589 5,633 752 1,204 1,575 6,014 23,478 10,802 3,067 7,735 575 9,335 13,001 10,769 752 1,480 1,710 11,291 28,936 11,329 3,638 7,691 275 9,335 19,506 17,159 752 1,595 1,816 17,689 34,991 423 11,426 11,848 0 460 12,308 423 13,935 14,358 9 559 14,925 423 17,701 18,124 60 711 18,896 845 21,688 22,533 0 945 23,478 845 27,146 27,991 0 945 28,936 845 33,201 34,046 0 945 34,991 FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

Note: Cash and Bank balance include fixed deposits

July 21, 2011

Hindustan Zinc | 1QFY2012 Result Update

Cash flow statement

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 fixed assets (Inc.)/ Dec. in investments (Inc.)/ Dec. in loans and adv. Other income Cash flow from investing Issue of equity Inc./(Dec.) in loans Dividend paid Others Cash flow from financing Inc./(Dec.) in cash Opening cash bal. Closing cash bal. FY2008 5,985 222 376 (767) 1,529 4,288 (1,513) (1,407) (80) 226 (2,774) 247 24 (271) 1,243 120 1,363 FY2009 3,358 286 296 (777) 521 2,642 (1,374) (443) 71 (1,602) (3,348) 8 124 22 (137) (844) 3,563 2,719 FY2010 5,014 335 173 (563) 785 4,173 (2,247) (3,922) (96) (3,977) 43 198 33.0 (187) 8 919 928 FY2011 5,960 475 (239) (834.8) 1,116 4,244 (1,446) 1,870 28 (3,631) (60.1) 296 7.6 (363) 250 5,383 5,633 FY2012E 7,158 519 (62) 1,289 6,327 (700) (700) 491 (491) 5,136 5,633 10,769 FY2013E 7,941 571 (53) 1,429 7,029 (227) (227) 412 (412) 6,390 10,769 17,159

2,288 (4,082.4)

July 21, 2011

10

Hindustan Zinc | 1QFY2012 Result Update

Key ratios
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 (0.6) (1.4) 213.4 (0.7) (3.5) 111.9 (0.7) (2.5) 101.5 (0.7) (2.7) 265.4 (0.7) (3.0) 313.7 (0.8) (3.6) 535.4 1.8 76 21 52 34 1.0 68 11 46 30 1.1 49 7 52 11 1.1 63 8 39 11 1.1 63 12 50 17 1.1 63 12 50 17 51.0 149.1 45.1 18.0 58.9 20.8 26.4 88.5 24.9 24.3 76.0 24.1 23.3 77.0 23.2 21.2 82.4 21.0 65.5 73.4 2.0 94.5 94.5 43.1 81.2 1.1 40.2 40.2 55.6 80.6 1.3 59.3 59.3 51.9 82.2 1.3 55.2 55.2 53.0 82.0 1.3 58.5 58.5 53.5 82.0 1.5 65.0 65.0 10.4 10.4 10.9 5.0 28.0 6.5 6.5 7.1 4.0 34.0 9.6 9.6 10.4 6.0 42.9 11.6 11.6 12.7 0.7 53.3 13.9 13.9 15.1 0.8 66.2 15.4 15.4 16.8 0.9 80.6 13.3 12.6 4.9 3.6 6.4 9.4 4.1 21.4 19.4 4.1 2.9 8.6 17.8 3.3 14.4 13.3 3.2 4.3 5.8 10.0 2.5 11.9 10.9 2.6 0.5 4.4 7.9 1.8 9.9 9.1 2.1 0.6 3.3 5.9 1.3 9.0 8.2 1.7 0.7 2.5 4.4 0.9 FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

July 21, 2011

11

Hindustan Zinc | 1QFY2012 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%)

July 21, 2011

12