Technical analyst, Ashwani Gujral is of the view that investors can buy Hidustan Zinc stock to achieve a medium-term target that lies between Rs 865 to Rs 920.

According to him, investors can purchase the stock around 735 with a stop loss of Rs 650.

The investors can achieve the target within a period of 4-5 months. So they are advised not to sell the stock before achieving this price target.

Today, the company’s shares opened at Rs 741, as against its last closure at Rs 733.85 on Wednesday (May 14), on the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 969 and a low of Rs 501 on BSE.

Hindustan Zinc (HZL), on April 30, announced that it has successfully finished its 88,000 tons per annum (tpa) zinc debottlenecking project at the Chanderiya and Debari smelters two months ahead of schedule.    

The total metal production capacity is now 754,000 tpa. HZL has already enhanced its ore production capacity to 7.1 million tpa.

The successful completion of the debottlenecking projects, together with HZL`s recently announced brownfield smelter projects, will increase total production capacities of zinc and lead to 1,065,000 tons per annum. This makes HZL the world’s biggest zinc-lead producer by 2010.

For the three months period ended Mar. 31, 2008, Hindustan Zinc announced a substantial rise in standalone net profit, which rose  36.68% to Rs 12,780 million from Rs 9,350 million in the same quarter last year.

The company posted earnings of Rs 30.25 a share during the quarter, registering 36.75% growth over previous year period.

Net sales for the quarter rose 12.12% to Rs 22,660 million, while total income for the quarter rose 23.72% to Rs 25,920 million, when compared with the prior year period.

Other stocks from the same sector that looks good for short-term trading includes Hind Copper, Sterlite Ind and Precision Wires.