Shares of Hindustan Zinc climbed more than 2 percent on December 15, extending their rally for the fifth consecutive session, supported by a sharp rise in silver prices and fresh bullish commentary from Jefferies.
The Vedanta Group-backed miner touched a new 52-week high of ₹571.80 during morning trade before paring some gains. Over the past five trading sessions, the stock has surged nearly 17 percent, outperforming the broader market.
Jefferies Initiates Coverage with ‘Buy’ Rating
Global brokerage Jefferies has initiated coverage on Hindustan Zinc shares with a ‘Buy’ rating and a target price of ₹660 per share. This indicates an upside potential of over 17.5 percent from the previous closing price of ₹561.65.
According to Jefferies, Hindustan Zinc is a key beneficiary of rising silver and zinc prices, given its strong cost structure and scale.
Strong Cost Position and Earnings Growth Outlook
Jefferies highlighted that the company sits in the first decile of the global zinc mining cost curve, providing it a significant competitive advantage during commodity upcycles.
The brokerage expects robust earnings growth, projecting:
- EPS growth of 22 percent in FY26
- EPS growth of 29 percent in FY27
- EPS growth of 7 percent in FY28
Silver Price Rally Lifts Sentiment
The recent rally in silver prices, which have crossed key psychological levels in domestic markets, has boosted investor sentiment toward metal producers. As one of India’s largest integrated zinc and silver producers, Hindustan Zinc is well-positioned to benefit from sustained strength in precious and base metals.
Stock Market Outlook
With strong momentum, supportive commodity prices, and a positive outlook from global brokerages, Hindustan Zinc remains firmly in focus for investors, especially those seeking exposure to the metals and mining space amid a global commodities upcycle.
