The shares of Hindustan Zinc jumped more than 3.5 percent to hit a fresh record high on December 17 on soaring silver prices. The shares of the Vedanta Group company have now recorded gains in six out of seven consecutive sessions.
Hindustan Zinc shares hit a new 52-week high of Rs 587.80 apiece in the morning trading hours of Wednesday, breaking the previous record just set yesterday. Notably, this is the highest level seen by the stock since August 2024.
The shares of the company have now surged more than 29 percent in less than a month.
Silver futures with March expiry jumped more than 4 percent to hit a fresh lifetime high of Rs 2,05,934 per kilogram today. This marks the first time these contracts have crossed the key Rs 2.05 lakh-mark. Silver futures with May and July expiry also hit fresh all-time highs of Rs 2,08,796 per kg and Rs 2,12,334 per kg respectively today.
Globally, spot silver surged to a record high of more than $66 an ounce, marking the first time it has crossed the $65 milestone level.
"While gold remains the primary hedge for Indian investors, silver is increasingly behaving like a leveraged play on both global growth and the energy transition. Its dual role as a monetary and industrial metal makes it particularly sensitive to shifts in interest rates, the dollar, and manufacturing demand," said Rajkumar Subramanian, Head - Product & Family Office, PL Wealth.
In the Indian context, silver is no longer just a tactical trade, the analyst said. "With rising industrial usage and increasing retail participation through ETFs and digital platforms, silver is emerging as a strategic portfolio diversifier - offering higher volatility than gold but also higher upside during commodity upcycles. Silver’s strength is being driven not just by its role as a precious metal, but increasingly by its industrial relevance. From solar manufacturing and EVs to electronics, India’s clean-energy and manufacturing push is structurally raising silver demand, making it a hybrid asset that benefits from both economic growth and periods of global uncertainty," he added.
The recent surge in Hindustan Zinc shares was mostly driven by the sharp rise in silver prices. Hindustan Zinc is the largest producer of silver in India, and produces refined silver with a minimum 99.9 percent purity. The sharp rise in the bullion's prices is expected to further boost the stock.
Jefferies recently initiated coverage on the shares of Hindustan Zinc with a 'Buy' call and a target price of Rs 660 per share. This implies an upside potential of more than 16 percent over the stock’s previous closing price of Rs 567.70 per share.
The company is a big beneficiary of rising silver and zinc prices, with first decile of the global zinc mining cost curve, the international brokerage said, adding that it expects EPS to rise at a strong rate of 22 percent and 29 percent in FY26 and FY27 respectively, and 7 percent in FY28.
"Silver price has doubled in 2025 to $62 at spot. HZ expects global silver market to remain in deficit in 2025; we assume silver prices of $56-60 in 2HFY26-FY28 (3-10% below spot). With HZ hedging 37% of its 2HFY26 silver volumes at $37, the full price benefit will come in FY27, providing a big EBITDA boost," the brokerage said.
Jefferies expects the company to see robust cash flows and RoE. It added that Hindustan Zinc’s valuation is justified by rising the share of silver in EBIT. The stock is trading at 9.2 times the FY27 enterprise value to earnings before interest, taxes, depreciation, and amortisation, which is above the long-term average of 7.3 times.
The international brokerage noted that the key risks to its bullish call are lower silver or zinc prices and mine grades, mine renewals after 2030, as well as adverse related party event, if any.
After hitting a 52-week low of Rs 378.15 per share in March this year, the stock rebounded around 55 percent in nine months to its new record high level today.
However, the stock is still over 59 percent lower than its all-time high level of Rs 1,443 per share, which it had hit in January 2011.
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