Shares of Hindustan Zinc, a Vedanta Group company and the world’s largest integrated zinc producer, remained higher for the fourth consecutive session on Friday, December 12, rallying another 6% to hit a fresh 1-year high of ₹553.45 apiece, resulting in a 4-day cumulative gain of 13%.
The uninterrupted rally in Hindustan Zinc’s share price, even as the broader markets remain volatile, was supported by a record-breaking surge in global silver prices, with spot silver touching another historic high of $64.31 per ounce in the previous session, bringing its year-to-date gain to 121%
Domestically, February silver futures, too, rose to an all-time high of ₹1,99,220 per kilogram on MCX on Thursday, extending the December rally by another 16% so far and contributing to a 127% surge in 2025.
The continued rally in silver prices is supported by robust industrial demand, particularly from sectors linked to green energy, declining inventories and the metal addition to the US critical minerals list.
Additionally, investments in silver, both in physical form and through exchange-traded funds (ETFs), continue to rise, reflecting growing confidence in the metal’s investment potential.
Further, the prices also drew support from the falling US dollar, which hit an eight-week low in the previous session following the US Federal Reserve’s 25 basis point interest rate cut, making precious metals priced in the greenback more affordable for overseas buyers.
Strong metal volumes and silver earnings drive Positive outlook
The robust run in silver prices has also prompted brokerage firms to turn more bullish on Hindustan Zinc.
B&K Securities, in its latest note, has initiated coverage on Hindustan Zinc with a ‘Buy’ rating, citing the Vedanta Group company’s strong cost efficiency, rising metal volumes, and the increasing earnings contribution from silver.
The firm has set a target price of ₹610 for the stock, valuing the zinc and lead businesses at 9x EV/EBITDA and the silver segment at 15x EV/EBITDA on FY28E estimates.
With silver prices expected to remain above $50 per ounce through the remainder of FY26, and with silver directly contributing to EBITDA, the brokerage projects the company’s share of EBITDA to rise to 42% in FY27 compared with 28% in FY25.
The company has hedged 120 tonnes of silver at $37 per ounce for the second half of the year, while the remaining 280 tonnes of planned production will be sold at spot prices.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
