Even in the domestic markets, silver March futures contracts scaled a new peak of Rs 2,05,934/kg.
The company stands out as a key beneficiary of the upcycle in both silver and zinc, supported by its first-decile zinc mining costs that ensure robust margin resilience. With silver prices having nearly doubled so far in 2025, Hindustan Zinc’s shares are now up more 28% year-to-date, raising the crucial question of whether the momentum can sustain into 2026.
Earlier this week, Jefferies initiated coverage on Hindustan Zinc with a Buy rating, noting that earnings are projected to expand sharply, with EPS growth of 22% in FY26 and 29% in FY27, followed by a further 7% increase in FY28.
Strong cash generation and healthy return on equity underpin this outlook, with FY26–28 EPS estimates 9–31% higher than Street expectations. Although the stock trades at 9.2x FY27E EV/EBITDA—above its long-term average of 7.3x—the valuation is seen as justified given the rising contribution of silver to overall profitability.
The company assumes silver prices in the $56–60 range during 2HFY26–FY28, around 3–10% below current spot levels. With nearly 37% of its 2HFY26 silver volumes hedged at $37, the bulk of the upside from higher prices is likely to flow through to earnings in FY27, delivering a meaningful boost to EBITDA.
Technical view“The stock has decisively broken above its previous resistance zone near 525–530, backed by strong volumes, indicating aggressive buying interest,” Aakash Shah, Technical Research Analyst at Choice Equity Broking said.
From a technical perspective, the stock is trading well above its key moving averages, with bullish alignment of trading above EMAs confirming a strong uptrend and trend reversal on the medium-term charts. “The prior resistance near Rs 540–545 is now expected to act as immediate support on any dip. On the upside, Rs 600 is a major psychological and technical resistance, where some profit-booking may emerge. A sustained move above Rs 600 could open the path toward Rs 620+ levels, Shah added.
Traders can continue to ride the momentum, while fresh entries should be considered on minor pullbacks rather than chasing extended candles. As long as the stock holds above the breakout zone, the bullish structure remains intact.
Hindustan Zinc shares are up 17% in the last 1 month and 28% on a YTD basis.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)