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Hindustan Zinc Hits 16-Month High on Silver Surge
18 Dec
Summary
- Hindustan Zinc stock reached ₹587.50, its highest since August 2024.
- Silver futures hit an all-time high of ₹2,06,111 per kilo on MCX.
- Brokerages B&K Securities and Jefferies initiate 'Buy' ratings with targets.
Hindustan Zinc experienced a significant surge in its stock price, reaching ₹587.50, its highest point in 16 months. This rally, occurring as broader markets faltered, was fueled by a substantial increase in silver prices. The company's stock has seen a 19% rise in December and a 30% appreciation throughout 2025, significantly increasing its market capitalization.
The impressive gains for Hindustan Zinc are closely tied to the domestic silver market, where March futures contracts on the MCX reached an all-time high of ₹2,06,111 per kilo. This surge in silver prices is supported by a weakening U.S. dollar, making precious metals more attractive to international buyers. Analysts predict silver will remain above $50 per ounce for the remainder of FY26.
Financial analysts are optimistic about Hindustan Zinc's future performance. B&K Securities initiated coverage with a 'Buy' rating and a target price of ₹610, projecting a rise in the company's EBITDA share from silver to 42% by FY27. Global brokerage firm Jefferies echoed this positive outlook, initiating coverage with a 'Buy' call and a target price of ₹660, identifying Hindustan Zinc as a key beneficiary of rising silver and zinc prices.
