Hindustan Zinc share price rallies 14% in 3 days; should you book profit?

Hindustan Zinc share price has more room to extend their ongoing winning streak with a potential gain towards ₹570-₹580, analysts said

Hindustan Zinc share price today

  Hindustan Zinc extended its stock rally into a third day on Friday, as share price of the metal company surged 7 per cent on the BSE in the intraday trade.

 

Hindustan Zinc shares jumped 7.07 per cent intraday to hit a high ₹559.4 on the BSE today, hitting a fresh 52-week high. The stock surpassed its previous 52-week high of ₹546.95 per share, touched on June 10, 2025.

 

Including today’s rally, Hindustan Zinc share price has zoomed 14.12 per cent in three sessions after precious metal Silver resumed its record-hitting rally. Hindustan Zinc is the world's fourth largest producer of Silver.

 

 

By comparison, the BSE Sensex index is up 0.72 per cent in three days.  FOLLOW LATEST STOCK MARKET UPDATES LIVE

Why are Hindustan Zinc shares rising?

Hindustan Zinc has been on a vertical move since December 9, 2025, after Silver resumed its record-hitting spree. Silver prices hit a record high on Thursday with MCX Silver futures (March 2026 expiry) hitting ₹1,99,220 per kilogram on December 11, before closing at ₹1,98,942/kg.

 

Hindustan Zinc, a Vedanta Group company, 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 in 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.

 

"Hindustan Zinc's long-term growth strategy is to expand refined silver capacity from 800 tpa to 1,500 tpa, effectively doubling silver capacity, and meaningfully amplifying earnings operationality," noted analysts at B&K Securities in their coverage initiation report, dated December 8, 2025.

 

According to the management, the company's planned capex includes increasing annual silver production (from zinc-rich residues) at the new Fumer unit at Chanderiya by 25-30 tonnes, and by 27 tonnes (from process waste streams) at the Hot Acid Leaching (HAL) plant.

 

"This expansion positions Hindustan Zinc to benefit from the structural global silver deficit expected going forward, driven by industrial demand trends such as solar photovoltaics, electric vehicles, power electronics, and 5G connectivity," B&K Securities said.

 

It added: HZL's earnings leverage is material, especially as silver acts as a natural hedge against zinc price volatility, providing significant stability in the softer base-metals cycle.  ALSO READ | Vedanta shares gain as it wins bid for Genjana nickel, chromium, PGE block

Hindustan Zinc stock rally: Hold or book profit?

 

Fundamentally, analysts at B&K Securities have set a one-year share price target on Hindustan Zinc at ₹610, implying a 16.75 per cent upside from Thursday’s closing price.

 

The brokerage initiated coverage on the stock with a 'Buy' rating , valuing the company's Zinc and Lead business at 9x EV/Ebitda and Silver business at 15x EV/Ebitda, based on FY28 estimates.

 

The valuation, it said, is based on the base case estimated prices of $3,000 per tonne for Zinc, $2,050 per tonne for Lead, and $44/ounce for Silver.

 

"With silver prices forecasted to remain above $50 per ounce throughout the rest of FY26, and silver’s contribution direct to Ebitda (with minor cost impact) expected to rise to 42 per cent of Ebitda in FY27 from 28 per cent in FY25, HZL's outlook remains in a bright spot," B&K Securities said.

 

Those at YES Securities, meanwhile, assigned an ‘Add’ rating and a target price of ₹551 per share on the stock post its Q2FY26 results.

 

"HZL delivered a resilient performance in Q2FY26, supported by better realizations and disciplined cost management despite modest volume headwinds. The company’s structural cost leadership, strong balance sheet, and increasing silver contribution to profitability continue to underpin earnings visibility," it said, adding near-term volume softness appears temporary, with medium-term growth expected to be driven by ongoing debottlenecking initiatives and an anticipated ramp-up in mining operations through H2FY26.

 

The brokerage projects revenue, Ebitda, and reported net profit to grow at 5.1 per cent, 7.6 per cent, and 6.8 per cent, respectively over the FY25-28E period.  ALSO READ | Ashok Leyland rallies 16% in 1 month; market cap nears ₹1 trillion

Hindustan Zinc: Stock technical analysis

According to Ravi Singh, chief research officer at Master Capital Services Hindustan Zinc shares have decisively breached their falling trend line resistance with good volume.

 

"Technically, prices have more room to extend their ongoing winning streak with a potential gain towards ₹570-₹580. Any fall in prices, close to ₹520-₹515, can be seen as an opportunity to build fresh long positions," he said.        =================  Disclaimer: The views and investment tips expressed by brokerages/analysts in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.