Hindustan Zinc Shares Surge to 1-Year High on Soaring Silver Prices

Hindustan Zinc Shares Continue to Rise

Shares of Hindustan Zinc, a leading zinc producer and part of the Vedanta Group, have been on the rise for the fourth day in a row. On Friday, December 12, the stock price increased by 6% to reach a fresh 1-year high of ₹553.45 per share. This surge has resulted in a cumulative gain of 13% over the past four days.

Global Silver Prices Reach New Heights

The main reason behind the rise in Hindustan Zinc's share price is the record-breaking surge in global silver prices. Spot silver has touched a historic high of $64.31 per ounce, with a year-to-date gain of 121%. In the domestic market, February silver futures have also risen to an all-time high of ₹1,99,220 per kilogram on the Multi Commodity Exchange (MCX), extending the December rally by 16% and contributing to a 127% surge in 2025.

Why Silver Prices are Rising

The continued rally in silver prices is driven by robust industrial demand, particularly from sectors linked to green energy, declining inventories, and the metal's addition to the US critical minerals list. Additionally, investments in silver, both in physical form and through exchange-traded funds (ETFs), are on the rise, reflecting growing confidence in the metal's investment potential.

Positive Outlook for Hindustan Zinc

The robust run in silver prices has prompted brokerage firms to turn more bullish on Hindustan Zinc. B&K Securities has initiated coverage on the company with a 'Buy' rating, citing its strong cost efficiency, rising metal volumes, and the increasing earnings contribution from silver. The firm has set a target price of ₹610 for the stock, valuing the zinc and lead businesses at 9x EV/EBITDA and the silver segment at 15x EV/EBITDA on FY28E estimates.

• The company has hedged 120 tonnes of silver at $37 per ounce for the second half of the year.
• The remaining 280 tonnes of planned production will be sold at spot prices.
• Silver prices are expected to remain above $50 per ounce through the remainder of FY26.

With the silver market expected to continue its upward trend, Hindustan Zinc's share price is likely to remain strong. As the company's silver earnings continue to drive growth, investors can expect a positive outlook for the stock.