Hindustan Zinc shares rise 6% to hit fresh 52-week high as silver extends record rally; m-cap nears Rs 3 lakh cr-mark

Hindustan Zinc shares rise 5% to hit fresh 52-week high as silver extends record rally; m-cap nears Rs 3 lakh cr-mark

• Hindustan Zinc shares hit 52-week high, boosted by record silver prices
• Q3FY26 EBITDA rose 36% QoQ, with silver making up 44% of total EBIT
• IIFL expects 15% EBITDA CAGR FY26–FY28, driven by silver prices and cost control

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Hindustan Zinc shares rose 6% on January 23 to hit fresh 52-week high as silver notched a new peak amid diminishing confidence in US assets on account of geopolitical tensions and economic uncertainty. The company is one of the biggest miners of silver in India.

The market capitalisation of the stock is near the coveted Rs 3 lakh crore-mark. Vedanta holds 62% stake in the company while government of India holds 28% stake.

Anil Agarwal of Vedanta Group bought this Navratna business from government of India for about Rs 500 crore.

If one looks at divestment history of Hindustan Zinc, government of India sold 1.6% stake in the company for Rs 3,450 crore in November 2024. In June 2025, Vedanta sold 1.6% stake for over Rs 3,000 crore.

At 11:05 am on January 23, Hindustan Zinc shares were trading 5.4% higher at Rs 704.6 apiece.

Spot silver surged 2.6% to $98.71 an ounce, after hitting a record high of $99.20 earlier.

At 9:21 am, the most-active February silver contract on the MCX was up 2.7% at Rs 3,36,147 per kg after hitting a new record high of Rs 3,39,927 per kg earlier in the day.

Hindustan Zinc’s Q3FY26 EBITDA rose 36% quarter-on-quarter and 35% year-on-year, coming in 8% above consensus, supported by lower zinc cost of production of around $940 per tonne (excluding royalty), the lowest in five years. EBITDA margins expanded by 310 basis points to 55.1%, while profit after tax increased 46% year-on-year. Silver accounted for nearly 44% of total EBIT during the quarter, benefiting from elevated prices.

IIFL Capital expects EBITDA to grow at around 15% CAGR over FY26–FY28, driven primarily by silver prices and cost discipline, even as volume growth remains muted until major expansion projects are commissioned around FY29. The brokerage has assumed long-term silver prices of $60 per ounce, noting that every US$10 per ounce change in silver prices could impact fair value by about Rs 59 per share. Strong cash flows and an expected dividend yield of around 3% are seen supporting valuations, while key risks include volatility in silver prices and a global demand slowdown.