Hindustan Zinc shares surge nearly 4%, hit fresh 52-week high on surging silver prices

Shares of Hindustan Zinc, the country's leading silver and zinc producer, rose for a third straight session on Wednesday, December 24. The stock rose as much as 3.61% to hit a fresh 52-week high of ₹631.90 on the National Stock Exchange. In the last three trading sessions the stock has surged as much as 7.3% amid surging silver prices in the international and domestic markets.

Silver futures for delivery in March rose as much as 1.92% to hit record high of ₹2,23,887 per kilogram on the MCX. Gold and silver prices continued their record-breaking run as investors piled into safe-haven assets amid rising geopolitical tensions and growing expectations of interest rate cuts next year by the US Federal Reserve.

Both precious metals extended their winning streaks, setting fresh records in domestic and international markets.

In the international markets, Comex gold futures for February delivery increased by $61.4, or 1.37%, to scale a fresh peak of $4,530.8 per ounce.

Market participants are currently pricing in two quarter-point rate cuts by the Federal Reserve next year, amid signs of easing inflation and a cooling labour market.

In addition, silver futures breached the $70-mark for the first time, on the Comex, gaining by $1.59, or 2.32%, to scale a fresh record of $70.15 per ounce.

Safe-haven demand for bullion has also been supported by rising tensions between the US and Venezuela, after Washington intensified its naval blockade of the region, seizing a second oil tanker on Saturday and pursuing a third.

So far this year, gold has soared 70%, putting it on course for its strongest annual gain since 1979.

Hindustan Zinc Q2 earnings

Hindustan Zinc reported 14% year-on-year (YoY) surge in its consolidated net profit to ₹2,649 crore in the second quarter of current financial year.

In the corresponding period last year, the company had clocked a profit of ₹2,327 crore.

The Vedanta-group company witnessed a 3.6% YoY increase in its total revenue from operations, which sat at ₹8,549 crore during the quarter under review, as against ₹8,252 crore in the September quarter of FY25.

At an operational level, the firm's EBITDA (earnings before interest, tax, depreciation, and amortisation), also known as operating profit, stood at ₹4,467 crore, marking its best-ever second-quarter EBITDA. It jumped 7% YoY from ₹4,164 crore in the same quarter of FY25.

During the reporting quarter, it also clocked an “industry-leading” EBITDA margin at 52%, expanding from 50% in the September quarter of the previous fiscal year.

Silver drove 40% of its overall profit, which uniquely positioned the firm for “riding the silver wave”.

The growth in revenue and operating profit was driven by higher commodity prices, lower cost of production, higher by-product realisations, softened input commodity prices, and a stronger dollar, which was partly offset by lower production.

As of 1034 am, Hindustan Zinc shares traded 2.84% higher at ₹627, outperforming the NIOFTY Metal index which was up 0.54%.