The share price of Hindustan Zinc fell 2.4% to Rs 578.05 on the National Stock Exchange. The profit booking is being seen in the stock after a few sessions of a strong run-up on the back of the rally in silver prices. The shares hit a new 52-week high of Rs 594.35 a day ago, December 18. The rise in Silver prices led to a rerating in the stock.
Rise in Silver prices
Silver delivered an exceptional rally in 2025, with prices rising nearly 130%, reaffirming its reputation for sharp, momentum-driven moves. Looking ahead to 2026, the outlook remains positive but far more volatile than gold, said Ajay Kedia, director of Kedia Advisories. The metal carries further upside potential of 20–25%, with Multi Commodity Exchange of India prices seen in the Rs 2,45,000–Rs 2,50,000 range and international prices around USD 72.5–74.
“Structurally, this cycle is supported by robust industrial demand from clean energy, solar, data centres, and electrification. Silver’s growing role as a “digital-age metal” strengthens its long-term case, with USD 100 remaining a realistic long-term target if supply constraints persist,” said Kedia.
To give you context, Hindustan Zinc is India’s largest and one of the world’s largest silver producers. Silver is a by-product of zinc mining, which Hindustan Zinc do.
Jefferies on Hindustan Zinc
Jefferies initiated coverage on Hindustan Zinc with a ‘Buy’ rating and a target of Rs 660 a week back. This implies a return of nearly 18% from current levels. The company is likely to gain from increasing silver and zinc prices, further helped by its position among the lowest-cost producers globally and a strong earnings outlook over the next few years, said Jefferies.
Hindustan Zinc’s stock performance
The share price of Hindustan Zinc has risen 4.4% in the last five trading sessions. The stock has increased 24% in the past one month and 35% in the last six months. Hindustan Zinc has given a return of 23.3% over the last one year.
