Hindustan Zinc shares reverse losses, trade in the green; stock jumps 17% in 5 sessions

The stock has been buzzing over the past few sessions, buoyed by a record rally in silver prices.

Data show that the stock has jumped around 17% over the past five sessions and 10% over the past six months. YTD, the stock has advanced over 27%.

In latest development, according to news reports, Jefferies has initiated coverage on Vedanta's subsidiary Hindustan Zinc Ltd.

Analysts at the investment firm note that they expect Hindustan Zinc's earnings per share (EPS) to rise by 22% and 29%, respectively, in financial years 2026 and 2027, and by another 7% in financial year 2028.

Their EPS estimates are 9% to 31% above street expectations, they note.

Global silver prices have surged more than 120% so far in 2025, hitting record levels close to the $65 per ounce mark. Hindustan Zinc stands out as the only listed pure-play silver company in India.

Silver accounts for nearly 40% of the company’s overall EBIT. By the second quarter of FY29, Hindustan Zinc plans to increase its silver production capacity by 4% to 830 tonnes per annum, while expanding its refined metal capacity by 34% to 1.5 million tonnes per annum (MTPA).

Hindustan Zinc is a subsidiary of Vedanta Limited and is essentially the only listed "pure-play" integrated silver producer in India. It holds a near-monopoly on primary silver production in the country.

Silver prices continue to rally

Silver prices strengthened for the third straight day on Friday, December 15, and jumped ₹5,100 to hit a new peak of ₹1,99,500 per kilogram in the national capital on Friday, amid sustained global demand for the safe-haven asset, according to the All India Sarafa Association.

The white metal closed ₹2,400 up at ₹1,94,400 per kilogram on Thursday, a day after surging ₹11,500 on Wednesday.

What is the outlook?

Gold and silver prices are poised to maintain their record-setting rally in the coming week as investors focus on global inflation data and key macroeconomic indicators that shape central bank policy paths, analysts said.

The spotlight will be on macroeconomic numbers, including inflation readings from India, the US, Europe, and the UK, as well as provisional manufacturing and services PMI data across major economies.

In the US, traders will also track non-farm payroll/weekly jobless claims, housing data and consumer sentiments, which will also shape the direction of bullion prices, they added.