Nilesh Shah on PSU privatisation: How Hindustan Zinc offers a lesson for IDBI Bank
Hindustan Zinc is in focus in a mutual funds development.
· Economic Times Markets, ET Stocks
Kotak AMC’s Nilesh Shah cited Hindustan Zinc as an example of how strategic divestment combined with a retained minority stake can create long-term national wealth. He said the government’s remaining stake is now worth over Rs 62,000 crore and expressed hope that IDBI Bank’s divestment would deliver similar value.
The analysis
Hindustan Zinc reported Rs 62,000 crore. Those are the figures as filed — what moves the price is how they sit against what the market already expected, not their absolute size.
Against that, the stock is -1.7% on the day at ₹531.00, and has returned +0.6% over three months. It sits 27% below its 52-week high, which means a good deal of bad news was already in the price. The metals & mining sector has moved -4.9% over the same period, so Hindustan Zinc is running 5.5 points ahead of its peers.
For Hindustan Zinc, the question is how much of this is already reflected in the price and how much re-rates the metals & mining peer set alongside it.
Why it matters
- Fund flows and NAV moves show where domestic retail conviction is actually going, month after month.
Market context
- The company directly in focus is HINDZINC.
- Sector exposure: Metals & Mining, Banks.
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