Hindustan Zinc hits 52-week high after strong Q3; analysts stay optimistic

Hindustan Zinc share price rose 1.8 per cent in trade, registering a 52-week high at ₹673.75 per share on BSE. At 9:27 AM, Hindustan Zinc shares were trading 1.44 per cent higher at ₹670.7 per share. In comparison, BSE Sensex was down 0.28 per cent at 83,010.83.

 

The buying on the counter came after the company reported its December quarter (Q3FY26) results on Monday, during market hours. According to analysts, Hindustan Zinc registered a strong quarter driven by better metal prices and improving volumes, alongside tight cost control.

Hindustan Zinc Q3 results highlights:

• The company’s net profit rose 46 per cent year-on-year (Y-o-Y) to ₹3,916 crore, from ₹2,678 crore in Q3FY25.
• Its revenue from operations increased 27 per cent to a record ₹10,980 crore, crossing the ₹10,000 crore mark for the first time. The company had reported a revenue of ₹8,614 crore a year ago.
• Hindustan Zinc’s Earnings before interest, taxes, depreciation, and amortisation (Ebitda) grew 34 per cent to ₹6,087 crore.

Brokerages’ view on Hindustan Zinc

Motilal Oswal Financial Services has reiterated its ‘Neutral’ rating and raised the target to ₹720 from ₹670.

 

 

The brokerage said Hindustan Zinc delivered a strong Q3FY26. It further noted that the recently announced expansion plans fit with Hindustan Zinc’s long-term goal of doubling capacity, which improves long-term earnings visibility. However, it expects near-term earnings growth to remain capped, with further upside in the near term largely dependent on LME price strength.

 

Motilal Oswal raised its FY26E estimates for revenue/Ebitda/PAT by 5 per cent/8 per cent/10 per cent, primarily on the back of higher silver prices, while keeping FY27/28 estimates unchanged. It said Hindustan Zinc’s valuation already reflects the positives.

 

Meanwhile, Emkay Global Financial Services noted that the balance sheet of Hindustan Zinc moved into net cash at ₹330 crore. Management reiterated disciplined hedging for FY27 (10–20 per cent), maintained FY26 capex and production guidance, and indicated that cost of production (CoP) could even come in below guidance.

 

Emkay highlighted that silver contributes 35–40 per cent of Ebitda, with earnings sensitivity of 1 per cent for every $1/oz move in silver prices. With spot silver prices implying potential earnings upside, Emkay believes this supports the ongoing re-rating in Vedanta (VEDL). It maintained a ‘Buy’ rating on Vedanta with a target price of ₹700.

 

JM Financial Institutional Securities has continued with ‘Buy’, but has hiked the target to ₹770 from ₹600. The brokerage remains constructive on Hindustan Zinc, citing its position at the lower end of the global cost curve, backed by high-grade captive mines, 100 per cent captive power, large scale, and a diversified revenue mix with rising silver contribution. 

 

Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers discretion is advised.