Hindustan Zinc’s stock slipped 6.5% on Thursday, reaching a low of Rs 588, after silver prices fell sharply.
Why the drop?
Silver on the Multi Commodity Exchange fell about 2.75%, losing Rs 7,000 per kilogram. The lower metal price hurt sentiment for Hindustan Zinc, India’s biggest silver producer.
Recent performance
After a strong rally in 2025 that lifted the share price nearly 40%, the stock has fallen about 10% over two days as investors booked profits.
Analyst view
Experts note that the company’s earnings grow when silver stays high, but the recent run‑up leaves limited upside for new buyers. One broker expects earnings to rise 22% in FY26 and 29% in FY27, with a target price of Rs 660.
What investors might consider
- Technical: The stock is holding above the Rs 560‑580 range, suggesting a short‑term positive bias. A break below Rs 540‑550 could signal further weakness.
- Fundamental: Profitability depends heavily on silver prices. If silver stays low, earnings growth may slow.
- Upcoming data: US jobs numbers later this week could affect global metal markets.
Bottom line
The dip is mainly a reaction to falling silver prices and profit‑taking after a big rally. Investors should watch silver trends, technical support levels, and broader market cues before making a move.
Remember, this is just an overview, not a recommendation. Do your own research and consider your risk tolerance.