1:1 Bonus, 1:5 Split, 39 Dividends: Hindustan Zinc Crashes By 6.5% As Silver Drops; BUY This Vedanta Stock?

Vedanta Ltd-backed Hindustan Zinc share price crashed by more than 6.5% on January 8th, as silver rates halt their rising spree and recorded a sharp correction. In 2025, silver rates gave extraordinary returns ranging from 150% to 180%, and this led to double-digit percentage upside and a back-to-back record rally in Hindustan Zinc. However, silver rates started to correct in the first week of January 2026, and the bearish heat is felt on Hindustan Zinc as well. HZL is expected to be biggest winner in silver rally due to its production in the said precious metal.

During Q3FY26, HZL reported 158 metric tonnes of saleable silver, up by 10% quarter-on-quarter basis. While in the nine months of FY26, HZL posted saleable silver production at 451 metric tonnes, in line with lead production and lower silver input from mines in accordance with the mining sequence.

Hindustan Zinc Share Price:

At the time of writing, HZL stock dropped nearly 6% to trade at Rs 591.95 apiece on BSE, with market cap of Rs 2,50,117.76 crore. Overall, in the session, HZL stock plunged by over 6.5% to hit an intraday low of Rs 588.55 apiece. In the late December, HZL had touched a new 52-week high of Rs 656.25 apiece.

Silver Rates In India:

Meanwhile, on January 8, 1Kg silver rate crashed by Rs 5,000 to Rs 2,52,000 in India. On the other hand, at MCX, silver futures with March 2026 expiry, plunged by a huge Rs 8,126 or 3.24% to trade at Rs 2,42,479 per 1Kg, which is near its intraday low of Rs 2,40,605 per 1Kg.

Additionally, MCX silver price with February 2026 expiry, dropped by Rs 7,945 or 3.14% to trade a Rs 2,45,150 per 1Kg, which is near its day's low of Rs 2,43,135 per 1Kg.

According to Axis Securities note, Comex Silver snapped its two-day winning streak, failing to hold above the $80 level. Profit-taking near record highs, coupled with strength in the U.S. dollar, weighed on the metal's appeal. However, the near-term trend remains positive for prices as long as the $70 level is intact on the downside

Buy Hindustan Zinc Stock On Dips?

The consensus recommendation from 15 analysts for Hindustan Zinc is HOLD, as per Trendlyne data. Of the total, 6 analysts have recommended STRONG BUY, while 3 have suggested HOLD and 2 analysts have recommended SELL. On other hand, 4 analysts have suggested STRONG SELL.

The average target price on HZL is of Rs 524.53 apiece, which signals at nearly 12% potential downside ahead.

However, global brokerage Jefferies is the latest to like HZL shares due to strong rally in silver rates.

On the valuation, Jefferies analysts said, "We expect HZ's EPS to rise at strong 22%/29% in FY26/FY27, and then by 7% in FY28; our FY26-28 EPS are 9-31% above street. Despite recent rally, HZ stock has lagged most of its global zinc and precious metal peers CYTD. Its 9.2x FY27E EV/EBITDA is above last 10Y average of 7.3x, but justified by rising share of silver in EBIT. We initiate with Buy and Rs660 PT (at 10x Sep-27E EV/EBITDA), 22% upside incl 4% dividend yield. Key risks are lower silver/zinc prices and mine grades, mine renewals post 2030, and adverse related party event."

Hindustan Zinc Corporate Action:

HZL has a history of steady dividend payouts, while the company has delivered one bonus and split.

Bonus Issue: The metal company has delivered only one bonus issue. In March 2011, HZL has paid 1:1 bonus shares. This meant 1 free share against 1 existing share.

Stock Split: Meanwhile, HZL has split only once. In March 2011, the company subdivided its shares in the ratio of 1:5, where the face value has split from Rs 10 each to Rs 2 each.

Dividends: Since August 2003, the company paid about 39 dividends, as per Trendlyne data. In the last 12 months, the company distributed up to Rs 10 dividend per share. It has a dividend yield of 1.57%.

Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.