Why is Hindustan Zinc's stock price rising?

Hindustan Zinc's stock price is rising due to the significant increase in silver prices, which boosts the company's earnings and market valuation.

What is the current silver price trend?

International spot silver prices have surpassed $80 per ounce for the first time, driven by a structural market deficit and increasing demand.

What drives global silver demand?

Global silver demand is driven by its extensive industrial applications, especially in solar panel manufacturing, and growing investment interest.

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Zinc Soars: Silver Surge Lifts Stock to New Highs

30 Dec

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Summary

Hindustan Zinc stock reached its highest level since August 2024.
Silver prices surpassed $80 per ounce, hitting a new international record.
A structural market deficit in silver is projected to continue.
Increased industrial and investment demand drives silver consumption.

Zinc Soars: Silver Surge Lifts Stock to New Highs

Hindustan Zinc experienced a significant rally, with its share price reaching ₹656.35, the highest since August 2024. This surge is largely attributed to the escalating silver rates observed in both domestic and international markets, positioning the stock as a leading performer in December.

The company's market valuation has substantially increased, now standing at ₹2.74 lakh crore. Each $1 per ounce increase in silver prices boosts Hindustan Zinc's EBITDA by approximately 1%. Silver's contribution to the company's earnings before interest and taxes has grown, with projections indicating further increases.

Globally, silver prices have crossed the $80 per ounce mark for the first time, driven by a sustained market deficit where demand outpaces supply for several years. Industrial applications, particularly in solar panel manufacturing, alongside rising investment demand and its inclusion in the US critical minerals list, are key drivers.