1:5 Split Soon: Blockbuster Metal Stock! Vedanta Ltd Hits New High; Buy As Silver Rate Jumps 56% In January?

Billionaire Anil Agarwal's metal stocks have continued on their blockbuster rally since the time silver rates globally shot up to record-breaking levels. In January 2026 so far, silver rates gained by nearly 56% in India, and that was enough to fuel bullish sentiments in Agarwal's two metal giants, like Hindustan Zinc and Vedanta Ltd. The two stocks have given between 17% to 20% returns this month and touched a new all-time high on January 27, 2026.

Vedanta vs Hindustan Zinc Share Prices:

The major reason why Hindustan Zinc is high is because of its dominance in silver metals. Hindustan Zinc recently reported its Q3 results which came better than estimates as EBITDA rose to Rs 60.5 billion, up by 7.7% versus consensus.

Under the operating profit, silver rates contributed about 35-40% to the total EBITDA of Hindustan Zinc. Another contributor was zinc. Both silver and zinc volumes surged by 9.4% and 9.7% sequentially in Q3FY26.

Data from Emkay Global revealed that during Q3, average zinc and silver prices surged by nearly 12% and 40.3% on quarter-on-quarter basis. The performance came despite lower hedging realizations and quarterly averages, which further pushed EBITDA margins of HZL by 129 basis points quarter-on-quarter. That being said, profitability climbed sharply accordingly to Rs 39.2 billion in Q3FY26 from Rs 26.5 billion in Q2FY26.

But why does Vedanta stock benefit from Hindustan Zinc's strong silver presence? This is because Hindustan Zinc is Vedanta's subsidiary and the former contributes about 40% to the parent's consolidated EBITDA. Hence, a strong performance and outlook of HZL is a good news for Vedanta.

Notably, in the Q3 of 2026, Vedanta is also in focus for its upcoming mega demerger, where its business will be split into five separate listed entities. Vedanta will continue to be the parent company of these separate entities and Hindustan Zinc.

Accordingly, experts are optimistic on both stocks of Anil Agarwal. But since Hindustan Zinc and Vedanta have touched back-to-back new all-time highs, the two stocks have surpassed targets of many brokerages. Does that it mean, investors should hold onto these two metal giants or book profits or buy more of them?

Vedanta Share Price:

On January 27, Vedanta Ltd. stock price touched a new all-time high of Rs 707.35 apiece in the early deals before correcting. At the time of writing, the stock traded at Rs 697 apiece, up by 2% on NSE with a market cap of Rs 2,73,433.88 crore.

Taking into consideration the new high, Vedanta stock has rallied by 17.4% on NSE in January 2026 so far. In a total of 17 trading sessions this month, Vedanta has rallied in 12 of them.

Hindustan Zinc Share Price:

Coming to Hindustan Zinc, this large-cap stock claimed a new record high of Rs 733 apiece on NSE. At the time of writing, the heavyweight traded at Rs 713.35 apiece, up by 2.10% with market cap of Rs 3,02,659.60 crore.

HZL has outperformed its parent with nearly 19.8% gains in January. This performance comes in just 11 sessions of gains out of 17 sessions.

Silver Rates In India:

Silver rate in India touched a new all-time high of Rs 3,70,000 per 1Kg. On January 27, silver gained by Rs 10,000. While at MCX silver hit a new historic high of Rs 3.65 lakh. This comes after spot silver price touched $117.69 per ounce mark for the first time ever. At the latest, geopolitical and global trade tensions have supported precious metals.

In January 2026 so far, silver skyrocketed by nearly 56%. Spot silver zoomed by 56.3% in past month and became a multibagger with nearly 271% jump in a year.

Vedanta Share Price Vs Hindustan Zinc Share Price Recommendation:

In their latest report, analysts at Emkay Global said, "We calculate that a USD1/oz move in silver prices has ~1% sensitivity to HZ's EBITDA. Silver contributes 20-25% to HZ's revenue and 35-40% to EBITDA. HZ delivered EBITDA of Rs174 billion, generating a 53% EBITDA margin in FY25."

They added, "We expect it to generate EBITDA of Rs310 billion (+78.6% vs FY25), with a 63.5% margin in FY27E, should spot prices of zinc and silver uphold. We still believe silver exposure is underpriced and the recent runup in HZ's and VEDL's stock price is a reflection of the earnings upgrade potential."

Vedanta Stock Buy Recommendation:

The consensus recommendation from 13 analysts for Vedanta is BUY, as per Trendlyne data. The stock has met target of the majority of brokerages. The average target price is of Rs 640.08 apiece, which indicates potential correction of 8.6% in Vedanta.

Hindustan Zinc Share

The consensus recommendation from 16 analysts for Hindustan Zinc is HOLD, as per Trendlyne. Of the total, six analysts have recommended STRONG BUY and 1 expert suggested BUY. HZL has touched target prices of Motilal Oswal of Rs 720. Now, the average target price is of Rs 612.75 apiece, which signals a correction of nearly 15% ahead.

Vedanta Demerger:

Vedanta is nearing its mega demerger which is expected to unlock values in businesses. The demerger ratio is of 1:5. Post demerger, Vedanta's businesses will operate as independent, sector specific companies, each positioned to capitalise on its respective market opportunities.

The resulting entities will be as follows:

- Vedanta Aluminium

- Vedanta Oil & Gas

- Vedanta Power

- Vedanta Iron & Steel

- Vedanta Limited who will continue to be the parent company housing Hindustan Zinc Limited and incubating future-facing businesses.

Shareholders of Vedanta Limited will receive equity shares in each of the four resulting listed entities (in addition to their shareholding in Vedanta Limited) in proportion to their existing holdings, ensuring continuity of ownership while enabling direct participation in the growth trajectories of individual businesses.

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