Hindustan Zinc Share Surges as Silver Prices Hit Record Highs in India: Should You Buy This Vedanta Stock?

Hindustan Zinc shares climbed on Thursday after Silver rates in India have smashed all previous records and touched unprecedented all-time highs, with the price of silver crossing the Rs 2 lakh per kilogram mark in key cities, reflecting a historic surge in domestic markets.

According to the latest rate listings, silver is trading at around Rs 201 per gram and over Rs 2,01,000 per kilogram, underscoring the metal's dramatic upside this year.

Hindustan Zinc Shares Rise as Silver Prices Hit Record Highs in India

Hindustan Zinc Ltd was trading at Rs 530.85, up Rs 18.20 or 3.55% as of 10:18 am on December 11. The stock opened the session at Rs 516.50 and moved to an intraday high of Rs 532.00, while the day's low so far stood at Rs 515.90.

Over the past year, Hindustan Zinc has traded between a 52-week high of Rs 546.80 and a 52-week low of Rs 378.15, reflecting significant price momentum amid rising silver and zinc prices.

Silver Stocks Rally: Should You Buy Hindustan Zinc Stock? Check Brokerages Target Price and Recommendation

Hindustan Zinc has strengthened its position as India's only pure listed silver play, benefiting significantly from the historic rally in silver prices. With silver contributing nearly 40-45% of the company's EBIT, the stock has become highly sensitive to movements in the white metal, offering substantial upside potential in the ongoing bull market.

Analyst sentiment on Hindustan Zinc remains mixed. Of the 17 analysts tracking the stock, eight recommend a 'Buy', three suggest 'Hold', and six advise 'Sell', reflecting varied views on valuation and future performance as per CNBC-TV18 report.

Hindustan Zinc, part of the Vedanta Group, is India's only and the world's largest integrated zinc producer. Its operations span the full value chain-from mining and milling to smelting, refining and captive power generation-across sites in Rajasthan and Uttarakhand. The company also manages some of the world's most advanced underground zinc-lead mines, ensuring consistent, large-scale output.

Crucially, it is also the world's fourth-largest silver producer, with the metal recovered as a by-product from lead smelting and residue processing. Rising industrial and clean-energy applications for silver have further boosted the company's long-term growth prospects.

Citing these strengths, B&K Securities has initiated coverage on the stock with a 'Buy' rating and set a target price of Rs 610, reflecting confidence in Hindustan Zinc's leverage to the structural silver uptrend and its expanding production capabilities.As a subsidiary of Vedanta Limited, Hindustan Zinc continues to leverage its integrated operations and scale to maximise gains from rising silver demand.

According to B&K Securities, silver is poised to play an even more crucial role in the company's earnings mix. The brokerage expects the metal's contribution to increase sharply from 28% of EBITDA currently to about 42% by FY27, driven by higher production and strategic hedging.

In the second half of the year, Hindustan Zinc sold 120 tonnes of silver at USD 37 per ounce under hedged contracts, out of a total output of 400 tonnes. The remaining unhedged volume will be sold at spot market prices, enabling the company to benefit from the surge in global silver rates.

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