1:1 Bonus, 1:5 Split, 39 Dividends: Hindustan Zinc Share Drops 5% Last Week As Silver Hits Rs 2.45 Lakh; BUY?

Hindustan Zinc share price ended at Rs 514.80 apiece during the March 20th trading session with an upside of 1.64% on BSE. However, despite this gain, HZL shares ended the last weekly session on a bearish note with nearly 5% decline on the exchange. This performance comes at a time when silver rate has nosedived to Rs 2.45 lakh per 1Kg in India and MCX silver has plunged below Rs 2.30 lakh. HZL is among top producers of silver in India.

Hindustan Zinc Share Price:

After the market hours on March 20th, the heavyweight metal stock closed at Rs 514.80 apiece on BSE, up by 1.64% with market cap of Rs 2,17,519.42 crore. This performance can be attributed to the broader positive rebound in Indian stock market and slight upside in silver rates that day before correction.

HZL's share price has nosedived by at least 4.6% on BSE from March 16th to 20th session. YTD, this stock has plunged nearly 16%.

HZL shares were among top gainers of 2025 as silver skyrocketed by more than 100% globally before correcting in late January 2026.

Silver Rates In India:

MCX silver price dropped by Rs 3,999 or 1.72% to end at Rs 2,27,470 per 1Kg. Silver is down by Rs 216,032 from its peak of Rs 4,39,337 per 1Kg which was recorded in late-January 2026. Also, spot silver which is struggling between $67 to $70 per ounce, has dropped by 23.4% in a month. Although, spot silver's year-on-year performance is still stellar by nearly 105%.

Meanwhile, physical silver price in India has dropped by nearly 17% to hit Rs 2.45 lakh mark in 1Kg.

How Silver Impacts Hindustan Zinc?

When silver rates were rallying in 2025, experts pointed out that Hindustan Zinc becomes the direct beneficiary of the rise as silver contributes materially to the company's revenues and profits.

During Q3FY26, HZL reported a whopping 83% growth in silver revenue to Rs 2,676 crore due to 74% surge in silver prices in that quarter alone.

As per Angel One, HZL aims to increase production of silver to 1,500 tonnes per year by FY30. The company is part of the Vedanta Group and has exposure to multiple metals, including silver and aluminium.

Should You Buy/SELL/HOLD Hindustan Zinc Shares?

According to MarketsMojo analysis, the revision in Hindustan Zinc Ltd's evaluation reflects a nuanced view of its current fundamentals and market position. The company's quality metrics remain strong, supported by high capital efficiency and low leverage. Financial trends show encouraging quarterly results, though long-term growth remains moderate.

"Valuation remains a key consideration, with the stock trading at a premium on absolute terms but offering some relative value compared to peers. The technical outlook suggests a period of consolidation, with recent price volatility influenced by market sentiment and promoter share pledging," their analysis added. Hence, they have recommended HOLD on HZL.

Meanwhile, JM Financial has recommended BUY on Hindustan Zinc. Also, another brokerage B&K Securities has recommended BUY with target price of Rs 668 as HZL shares have corrected meaningfully. The reason behind B&K's rating is that it expects silver production to rise by 10% sequentially in Q4FY26, combined with attractive valuation of HZL.

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.

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