Hindustan Zinc share price surged to a new 52-week high on Friday, December 12, climbing another 6% to touch ₹553.45. With this, the stock has now gained 13% in just four trading sessions, outperforming the broader market despite volatility.
Global Silver Prices Boost Hindustan Zinc Stock
The strong rally in global silver prices has been a major driver behind the stock’s uptrend. Spot silver hit a record high of $64.31 per ounce, taking its year-to-date gains to 121%.
In India, MCX February silver futures also reached an all-time high of ₹1,99,220 per kilogram. Silver prices jumped 16% in November alone, and have now delivered a massive 127% YTD rise.
The sharp uptrend in silver is supported by:
-
Strong industrial demand
-
Declining global inventories
-
Silver being added to the US critical minerals list
-
A weaker US dollar after the recent 25 bps Fed rate cut
Brokerages Turn Bullish on Hindustan Zinc
Rising silver prices and strong metal volumes have led brokerages to adopt a bullish outlook on Hindustan Zinc.
B&K Securities has initiated coverage on the stock with a ‘Buy’ rating, highlighting:
-
Strong cost efficiency
-
Growing zinc, lead, and silver volumes
-
Increasing earnings contribution from silver
The brokerage has set a target price of ₹610 for Hindustan Zinc.
It values:
-
Zinc & lead businesses: 9x EV/EBITDA
-
Silver business: 15x EV/EBITDA
based on FY28 estimates.
Silver to Become Bigger Contributor to Earnings
With silver expected to remain above $50 per ounce through FY26, Hindustan Zinc’s profitability outlook has improved significantly.
According to B&K Securities:
-
Silver contribution to EBITDA will rise to 42% in FY27,
-
Up from 28% in FY25.
The company has already hedged 120 tonnes of silver at $37 per ounce for the second half of the year.
The remaining 280 tonnes of planned production will be sold at spot prices, allowing the firm to benefit from high market rates.
also see