Hindustan Zinc shares rise 4% as brokerages weigh Q2 results, silver price outlook

Hindustan Zinc Ltd shares rose 4% in Wednesday's trade, as investors assessed the company's September-quarter performance and brokerage views on the stock.

The 12-month Bloomberg consensus target price stands at Rs 646, implying around 20% upside over Monday's closing price of Rs 538.40. HSBC has the highest target price at Rs 770, while Citi has the lowest at Rs 495, according to Bloomberg data compiled by Business Today.

The company reported an Ebitda margin of 61.3%, while management reiterated its FY27 refined metal production guidance of 1.1 million tonnes.

Hindustan Zinc shares rose 4.48% to hit a session high of Rs 561.95, against the previous close of Rs 537.85. The stock opened at Rs 561.95 and touched a low of Rs 538.45 during the session.

What brokerages say on Hindustan Zinc

Jefferies retained its 'Buy' rating on Hindustan Zinc and raised its target price to Rs 650, implying around 21% upside from the brokerage's reference price. However, it said it preferred JSW Steel Ltd and Welspun Corp Ltd among domestic metal companies. Jefferies flagged the volatility in silver prices since June 2026 and warned that rising interest rates could pose near-term pressure, even as supply disruptions support zinc prices.

Motilal Oswal Financial Services (MOFSL) highlighted the company's better-than-expected quarterly performance, attributing it to favourable metal prices, improved grades and higher by-product net realisation, which helped lower production costs. The brokerage said Hindustan Zinc was continuing to ramp up output, improve operational efficiency and maintain cost discipline.

Nuvama, meanwhile, retained its 'Buy' rating but lowered its target price to Rs 676 from Rs 700. The brokerage raised its FY27 EBITDA estimate by 8% to account for higher zinc prices and is factoring in LME zinc prices of $3,525 per tonne in FY27 and $3,200 per tonne in FY28. Nuvama noted that Hindustan Zinc was trading at 6.6 times estimated FY28 enterprise value to EBITDA, below its 10-year average of 7.8 times.