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Silver Surge Lifts Hindustan Zinc Shares
10 Dec
Summary
- Hindustan Zinc shares surged nearly 4% on Wednesday, December 10.
- The rally is attributed to a sharp recent jump in silver rates in India.
- Brokerage firms have revised targets upward, indicating a positive trend.
Hindustan Zinc Limited's shares experienced a notable surge of approximately 4% on Wednesday, December 10. This upward movement in the stock price is directly correlated with a significant increase in silver rates observed over the preceding days. The company's stock has demonstrated considerable volatility recently.
The substantial rally in Hindustan Zinc shares is largely attributed to the impressive jump in silver prices within India. This favorable commodity price movement, combined with the company's strong balance sheet and structural cost leadership, is expected to bolster profitability. Brokerage firms have taken notice, with several revising their target prices upwards, suggesting sustained earnings visibility.
Following this positive trend, B&K Securities has issued a strong 'buy' rating for Hindustan Zinc shares, setting a target price of Rs 610. This optimistic outlook is based on future earnings forecasts and attractive valuation multiples for both zinc and silver segments, indicating potential for further growth.
