1:1 Bonus, 1:5 Split, 39 Dividends: Hindustan Zinc Share Jumps 3.4% As Silver Hit New Highs; BUY Vedanta Stock

Hindustan Zinc, the leading zinc and aluminum company of Vedanta Ltd, is trading on a strong bullish note on January 12. HZL share price rallied as much as 3.4% and inched closer to its 52-week high after silver rates at MCX touched new record highs. HZL is expected to be the biggest winner in the silver rally due to its production dominance in the said precious metal. The consensus on this Vedanta-backed stock is hold.

Hindustan Zinc Share Price:

At the time of writing, HZL stock traded at Rs 625 apiece, up by 2.97% on BSE, with market cap of Rs 2,64,124.69 crore. The stock rallied by at least 3.4% to hit an intraday high of Rs 627.45 apiece in the early deals. That being said, HZL is currently trading near its day's high.

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.

Silver Rates In India:

Silver rates in India touched a new all-time high of Rs 2,70,000 per 1Kg at retail stores. At MCX, silver futures with February 2026 expiry hit a new lifetime high of Rs 2,67,474 per 1Kg, while silver with March 2026 expiry, touched a new historic high of Rs 2,63,996 per 1Kg.

MCX silver prices are up by 4% to 4.5% currently. This comes after spot silver price climbed by over 4% to hit above $83 per ounce on Monday, achieving fresh record highs as bets as expectations of rate cut from US Federal Reserve and geopolitical tensions bolster demand for safe-haven precious metals.

Hindustan Zinc Share Price Outlook:

On a technical front, a report of Markets Mojo said, the stock trades above its 20-day, 50-day, 100-day, and 200-day moving averages, signalling a sustained uptrend. However, it remains slightly below its 5-day moving average, suggesting some short-term consolidation. This technical setup indicates a healthy momentum with potential for further upside, provided the stock maintains support at key moving average levels.

Notably, the report added that HZL shares have outperformed its sector peers and demonstrated resilience despite mixed market conditions, signalling renewed investor confidence and a potential shift in momentum.

MarketsMOJO's latest assessment upgraded Hindustan Zinc Ltd's Mojo Grade from Sell to Hold on 9 Oct 2025, reflecting an improved outlook based on fundamental and technical factors. The company currently holds a Mojo Score of 65.0, indicating moderate confidence in its near-term prospects. While the grade remains a Hold, the upgrade signals a positive shift in sentiment compared to previous assessments, as per the report.

The consensus recommendation from 15 analysts for Hindustan Zinc is HOLD, as per Trendlyne data. EPS is expected to grow by 15.0% in FY26. 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."

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%.

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