Hindustan Zinc rises 3% on silver's record run; stock up 25% this month

Hindustan Zinc shares advanced over 3 per cent on Monday, extending a month-long rally beyond 25 per cent amid a surge in silver prices to record levels.

 

The Vedanta Group company's stock price rose as much as 3.7 per cent to ₹610.5 per share, the highest level since August 2024. The Hindustan Zinc stock pared gains to trade 3.3 per cent higher at ₹608.1 apiece, compared to a 0.67 per cent advance in Nifty 50 as of 12:58 PM. 

 

Shares of the company have risen over 25 per cent so far this month and currently trade at 1.5 times the average 30-day trading volume, according to Bloomberg. The counter has risen 37 per cent this year, compared to a 10.5 per cent advance in the benchmark Nifty 50. Hindustan Zinc has a total market capitalisation of ₹2.56 trillion.   READ STOCK MARKET UPDATES TODAY LIVE

Silver extends record run

On Monday, Silver prices hit a record high with MCX Silver futures (March 2026 expiry) hitting ₹2,14,583 per kilogram. In the global market, Silver spot prices rose 2.74 per cent to near the record mark of 68.99  per ounce, according to Bloomberg.

 

Silver prices are up 22 per cent so far in December and are up 138 per cent this calendar year. 

 

In MCX, as long as prices hold above the ₹2,10,000 mark, the long-term bullish structure remains intact, Ponmudi R, chief executive officer of Enrich Money, said. The ₹2,05,000-₹2,02,000 zone acts as a strong demand area, while resistance is placed between ₹2,15,000 and ₹2,20,000. "A decisive breakout above this band could trigger fresh highs."

 

Hindustan Zinc is India's only integrated and listed silver-producing company. It is also the operator of one of the top five silver-producing mines in the world. The company produces approximately 700 tonnes of Silver annually, with the metal accounting for a significant portion of the company's profitability. As of Q1FY26, silver production contributed 41.5 per cent of the total profit, which stayed steady at 41 per cent at the end of Q2FY26.  ALSO READ | KMEW soars 17%; smallcap stock zooms 125% from September low; here's why 

Last week, Jefferies initiated coverage on Hindustan Zinc, citing it as a big beneficiary of rising silver and zinc prices with a first-decile zinc mining cost. Hindustan Zinc expects the global silver market to remain in deficit in 2025. Jefferies assumes silver prices of $56-60 per ounce for H2FY26-FY28, which is 3-10 per cent below current spot levels.

 

With Hindustan Zinc having hedged 37 per cent of its H2FY26 silver volumes at $37 per ounce, the full benefit of higher silver prices will materialise in FY27, providing a significant Earnings before interest, tax, depreciation and amortisation (Ebitda) boost.