Hind Zinc stock jumps 3% as silver prices soar to record highs, delivers 33% returns in 1 month: Should you book profits?

Hindustan Zinc share price

The shares of Hindustan Zinc jumped more than 3 percent on December 22 as silver prices soared to fresh record highs.

The shares of the Vedanta Group-company rose to a fresh 52-week high of Rs 606.70 apiece in the early trading hours of Monday. The stock has now jumped over 33 percent in the past one month.

Soaring silver prices:

Silver futures with March expiry jumped more than 3 percent to hit a fresh lifetime high of Rs 2,14,275 per kilogram today. This marks the first time these contracts have crossed the key Rs 2.10 lakh-mark. Silver futures with May and July expiry also hit fresh all-time highs of Rs 2,17,291 per kg and Rs 2,21,349 per kg respectively today.

Globally, spot silver surged to a record high of more than $69 an ounce, marking the first time it has crossed the milestone level.

“Silver prices have surged to record highs in international markets, driven by a physical metal shortage, booming solar industry demand, strong Indian imports, and sustained inflows into silver ETF,” said Tata Mutual Fund.

Silver prices surged to record highs as investors increasingly priced in the possibility of two interest rate cuts in early 2026, Axis Securities. “Sentiment was bolstered by comments from Fed Governor Christopher Waller, a leading contender for the Fed chair role, who suggested that US borrowing costs should be up to one percentage point lower. Waller cautioned that job growth has slowed to near zero and advocated measured rate cuts next year to help support employment. Earlier in the week, US labour data had already reinforced signs of a cooling job market,” it added.

“Investment demand remains robust as silver-backed ETFs continue to attract buying interest, with global holdings on pace for a sixth consecutive week of inflows. Momentum has been further amplified by reports that China plans to restrict silver exports from 2026, a development that could disrupt a key supply source and intensify pressure on the global market. With Chinese silver inventories already at their lowest levels in a decade, any export curbs risk worsening the physical squeeze, reinforcing the bullish narrative and potentially sustaining elevated prices in the near term,” said Kaynat Chainwala, AVP Commodity Research, Kotak Securities.

Why are Hindustan Zinc shares rising?

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.

What lies ahead?

Hindustan Zinc is increasingly emerging as a key beneficiary of the ongoing upcycle in precious and base metals, led by an exceptional rally in silver, said Harshal Dasani, Business Head at INVasset PMS. He noted that global silver prices moving to fresh all-time highs reflect a tight structural supply situation and steadily rising industrial demand from electronics, renewable energy, and electric mobility. "With limited new mine supply coming on stream, the silver deficit remains a powerful medium-term theme," the analyst said.

"For Hindustan Zinc, higher silver realization is strategically important, as silver has become a meaningful contributor to profitability alongside zinc and lead. This provides earnings resilience even during periods of base-metal volatility, while offering leverage to precious-metal strength," Dasani said.

From a technical perspective, the stock has been forming a long-term rounding bottom pattern, indicating gradual accumulation and improving risk appetite. Such formations often precede major trend reversals, and a decisive move beyond previous lifetime highs could open up a new structural uptrend, he added.

"Looking ahead, 2026 is shaping up to be a year where metals could outperform, supported by global capex in energy transition, constrained supply chains, and persistent inflation hedging demand. In that context, Hindustan Zinc appears well positioned for a meaningful re-rating, driven by both fundamentals and technical momentum," the analyst said.

Here's what Jefferies said about Hindustan Zinc shares:

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 12 percent over the stock’s previous closing price of Rs 588.75 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.

Hindustan Zinc share price history:

After hitting a 52-week low of Rs 378.15 per share in March this year, the stock rebounded around 60 percent in nine months to its new record high level today.

However, the stock is still over 58 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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