Vedanta's Stock Hindustan Zinc Crashes 4% As Silver Rates Fall; BUY This Mega Metal Stock?

Vedanta-backed stock Hindustan Zinc share price dropped by around 4% due to a sharp decline in silver rates across the globe. This is because Hindustan Zinc is among the largest producers of silver and zinc in India. Hindustan Zinc is among the top dividend-paying metal stocks, with a healthy history of bonus issue and stock split as well. The consensus recommendation on Hindustan Zinc is still bullish.

Hindustan Zinc Share Price:

In the early trade, Hindustan Zinc shares dropped by 3.99% to hit an intraday low of Rs 541.20 apiece. This happened amidst steep decline in silver prices. It needs to be noted that silver contributes to Hindustan Zinc's revenue significantly despite lower shares in volume terms than compared to zinc.

At the time of writing, Hindustan Zinc shares traded at Rs 550 apiece on BSE, down by 2.43% on BSE, with market cap of Rs 2,32,392.55 crore.

Silver Rates Today

Spot silver and MCX silver prices have plunged by 2-3% on Wednesday, while 1Kg physical silver rate is down by Rs 10,000 to Rs 2.50 lakh mark during the day. Spot silver is below $64 per ounce and MCX silver plunged to below Rs 2.34 lakh.

Hindustan Zinc Dividends, Bonus, Splits

This Vedanta-backed giant has a strong track record of dividend payouts. While it has split once in its history and rewarded one bonus issue to investors.

Dividends: Since August 2003, the company distributed as much as 40 dividends. In the past 12 months, the dividend payout was of Rs 21 per share. Its current dividend yield is of 3.81%.

Bonus Shares: The company has issued only one bonus share in its history and that was in the ratio of 1:1 in March 2011.

Stock Slit: Hindustan Zinc also split once in the ratio of 1:5 on March 8, 2011, where its face value was trimmed to Rs 2 each from earlier Rs 10 each.

BUY/SELL/HOLD Hindustan Zinc Share Price

The consensus recommendation from 16 analysts for Hindustan Zinc is BUY, as per Trendlyne data. EPS is expected to grow by 27.6% in FY27. The average 12-months target is of Rs 655.19 apiece, which signals a potential of 19.40% upside ahead.

After Q4 results, analysts at SBI Securities pointed out that during QQFY26, the company reported its consolidated Revenue/EBITDA/PAT at Rs 13,544 crore/Rs 7,706 crore/Rs 5,033 crore growing in at 49.0%/59.9%/67.6% YoY respectively. EBITDA margins expanded ~390 bps to 56.9% vs 53.0% YoY led by lowest-ever Zinc CoP since underground transition. Silver production stood at 176 MT, flat YoY. For FY26, Silver contributed 45% to the overall profitability.

SBI Securities highlighted HZL's strong operational outlook, robust earnings trajectory, expanding silver contribution and strategic positioning in India's critical minerals ecosystem as key growth drivers.

The brokerage noted that HZL continues to benefit from India's long-term
infrastructure and manufacturing growth story. With the government targeting steel demand of nearly 300 million tonnes by CY30, India's zinc and lead demand is expected to rise to nearly 2 million tonnes, positioning Hindustan Zinc as a key beneficiary given its nearly 77% share in the domestic primary zinc market.

Accordingly, the brokerage has recommended BUY with a target price of Rs 745.

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