Hindustan Zinc Shares Jump 4% as Silver Prices Soar 45% in 2026. Check Target, Upside
Hindustan Zinc’s stock has experienced an impressive surge in recent days, reflecting the rising global demand for silver. With silver prices soaring dramatically, investors are keen to explore how this impacts Hindustan Zinc shares.
Silver Prices Rocketing in 2026
– Silver has seen a remarkable rise of nearly 50% in January alone.
– Recently, it surged over 6%, reaching a milestone of $100 per troy ounce.
– At the Multi Commodity Exchange (MCX), silver futures for March 5 delivery climbed to Rs 354,530 per kg, marking an increase of Rs 19,831 or 5.93% after hitting a peak of Rs 354,780.
Hindustan Zinc: A Leading Silver Producer
– Hindustan Zinc ranks among the top silver producers globally, with an annual output of 22.5 million ounces.
– It surpasses Grupo Mexico (12.1 million ounces) and approaches notable competitors like Fresnillo (52.5 million ounces) and Newmont (28 million ounces).
– The company operates at the lowest quartile of the global zinc cost curve, with an estimated mine life of about 25 years.
Investment Insights and Guidance
Analysts Weigh In
– HSBC recently upgraded Hindustan Zinc to a Buy rating from Hold, increasing its target price to Rs 750 per share.
– This valuation reflects a jump to 11x FY27E EV/EBITDA from 9.5x, situated at the higher end of its five-year trading range (5–11x).
– HSBC highlights a positive outlook regarding spot LME zinc and silver prices, indicating further potential for earnings growth.
Latest Financial Performance
– Following an impressive Q3, Hindustan Zinc reported its highest-ever quarterly revenue, amounting to Rs 10,980 crore, a 27% increase from Rs 8,614 crore in the same quarter last year.
– The consolidated net profit surged by 46% to Rs 3,916 crore, compared to Rs 2,678 crore the previous year.
– It achieved a 4% year-over-year growth in mined metal production, totaling 276 Kt.
– The production cost dropped to $940 per tonne, marking the lowest in five years.
What Lies Ahead for Hindustan Zinc?
– Management has maintained its silver volume guidance for FY26 at 680 tonnes.
– Planned capital expenditure is $700 million, divided into $400 million for maintenance and $300 million for growth.
– This investment is expected to increase in FY27 and FY28 to support expansion efforts.
Conclusion
With Hindustan Zinc’s shares climbing in tandem with soaring silver prices, there is optimism for the company’s future growth. Analysts recommend stocks as strong contenders in light of robust market conditions and solid financial performance. Investors looking for exposure in the metal sector may find Hindustan Zinc an attractive option, especially as silver continues its upward trajectory in 2026.