Hindustan Zinc shares rose 3.6 percent on Tuesday, closing at ₹482.95 on the National Stock Exchange (NSE) after reaching an intra-day high of ₹483.90. The uptick in the stock price was mirrored by parent company Vedanta, buoyed by positive sentiment regarding climbing silver prices.
According to domestic brokerage Emkay Global Financial, Hindustan Zinc is positioned to benefit significantly from strong silver performance. The metal has surged 63 percent year-to-date, currently trading at $47 per ounce, compared to $34 per ounce in the first quarter of FY26. The brokerage emphasized that global competitors such as Fresnillo and Grupo Mexico have already been re-rated, indicating similar potential for Hindustan Zinc.
Silver accounts for approximately 20-25 percent of Hindustan Zinc’s total revenue and 35-40 percent of its EBITDA, functioning as a by-product of zinc production. Notably, 88 percent of the revenue generated from silver directly contributes to EBITDA. Emkay noted that a $1 per ounce increase in silver prices results in a 1 percent impact on the company’s EBITDA.
On Tuesday, trading activity was robust, with 151.67 lakh shares valued at ₹725.73 crore changing hands. The deliverable quantity represented 34.66 percent of the traded volume. Hindustan Zinc plays a crucial role in Vedanta’s financials, contributing 40 percent to the company’s overall EBITDA.
Emkay has maintained a ‘Buy’ rating on Vedanta with a target price set at ₹525, citing potential gains from elevated silver prices. The current silver prices are supported by a structural supply-demand deficit alongside a weak dollar index.
Published on September 30, 2025.
