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Hindustan Zinc Soars: Silver Rally Fuels Market Cap Boom
23 Jan
Summary
- Hindustan Zinc's market value surpassed Rs 3.2 lakh crore.
- Silver prices have dramatically tripled over the past year.
- HSBC and IIFL Capital upgraded the stock with target prices.
Hindustan Zinc Limited has achieved a significant milestone, with its market capitalization exceeding Rs 3.2 lakh crore. This valuation surge is primarily attributed to a dramatic threefold increase in silver prices over the past year, positioning the company as a leader in India's metals sector. The company's stock saw a notable jump of over 6% on Friday, contributing to its year-to-date gains.
Analysts are optimistic about Hindustan Zinc's prospects. HSBC upgraded the stock to 'Buy' with a target price of Rs 750, citing strong fundamentals and a stable outlook for zinc and silver prices. IIFL Capital initiated coverage with an 'Add' rating and a target of Rs 712, acknowledging management's maintained silver volume guidance.
The company reported its highest-ever quarterly topline and bottom-line in Q3 FY26, with consolidated net profit jumping 46% year-on-year to Rs 3,916 crore. Total revenue also reached a quarterly high of Rs 10,980 crore, a 27% increase from the previous year. Furthermore, its quarterly cost of production was the lowest in five years at $940 per tonne.
