Hindustan Zinc (HZ) disclosed a steady growth in standalone net profit for the quarter ended June 2015. During the quarter, the profit of the company rose 18.74% to Rs 19,208 million from Rs 16,176.70 million  in the same quarter previous year. Revenues for the quarter rose 20.72% to Rs 36,301.70 million, compared with Rs 30,072 million for the prior year period.

Commenting on the quarterly financial performance, Religare Capital said, ''The company's headline profit numbers for the first quarter of the financial year outperformed street expectations, with EBITDA and PAT growth of 23% and 19% year on year to Rs 16.6 billion and Rs 19.2 billion.

Despite the likely decline in profitability over FY16-FY17 due to DMF charges, we like HZ due to its lower earnings vulnerability vs. peers and a strong balance sheet which limits downside. However, retrospective implementation of DMF tax, higher mine costs and volume disruptions due to a transition to UG mining remain key risks.

HZ is trading at 5.3x FY17E EV/EBITDA. We value the stock at 5.5xFY17E EV/EBITDA. We initiate coverage on HZ with Hold and a Sep'16 TP of Rs 175, set at 5.5x FY17E EV/EBITDA.''

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