Shares of Hindustan Zinc witnessed another powerful rally on Wednesday, climbing 3.5% to close at ₹587.50 per share. This marks the stock's highest level since August 2024, showcasing its resilience even as the broader market indices remained under pressure for a third straight session.
Silver's Record Run Powers Metals Stock
The primary catalyst behind the surge was the continued record-breaking rally in silver prices. Globally, spot silver prices jumped 2.8% to an unprecedented $65.63 per ounce, decisively breaching the $65 threshold for the first time. The momentum was mirrored domestically, where the March silver futures contract on the Multi Commodity Exchange (MCX) soared 4.2% to a fresh all-time high of ₹2,06,111 per kilogram. Silver has now rallied a staggering 134% year-to-date, nearly doubling gold's gains over the same period.
Market Dynamics and Brokerage Confidence
The rally in precious metals was triggered by weaker-than-expected U.S. jobs data, which showed the unemployment rate climbing to 4.6% in November, the highest since September 2021. This data reinforced market expectations that the U.S. Federal Reserve could implement another interest rate cut as early as January, following three consecutive reductions since September. A softening U.S. dollar further supported bullion prices, making them cheaper for international buyers.
For Hindustan Zinc, this silver boom is directly beneficial. The metal contributed a significant 40% to the company's profitability in the September quarter. Domestic brokerage B&K Securities, which initiated coverage on the stock with a 'Buy' rating and a target price of ₹610, projects that silver's share in the company's EBITDA could rise to 42% in FY27 from 28% in FY25, assuming prices stay above $50 per ounce.
Global brokerage Jefferies also holds a bullish view, assigning a 'Buy' call with a higher target price of ₹660 per share, citing the company's key beneficiary status from rising silver and zinc prices.
Impressive Financial Milestones Achieved
The sustained rally has translated into substantial gains for investors and the company's valuation. With today's upmove, Hindustan Zinc's stock has advanced 19% in December alone, contributing to a 30% rally in 2025 so far. The stock opened strong at ₹580 and maintained its momentum to hit a 16-month high.
This performance has significantly boosted the company's market capitalisation, which now stands at a formidable ₹2.43 lakh crore. Notably, the firm has added nearly ₹55,000 crore to its market value in 2025, underscoring the powerful investor sentiment driven by commodity tailwinds.
Disclaimer: This article is for informational purposes only. The views and recommendations are those of the cited brokerages and not of the publisher. Investors are advised to consult certified experts before making any investment decisions.
