Hindustan Zinc Shares Soar to 52-Week High Amid Silver Price Surge

Shares of Hindustan Zinc continued their upward trajectory, hitting a fresh 52-week high of ₹553.45, marking a remarkable 13% gain over the past four days. The rally is closely linked to soaring global and domestic silver prices, which have fueled investor interest and highlighted the company’s strong earnings from precious metals.

Market Performance Snapshot

• Hindustan Zinc shares rose 6% in a single session, reaching ₹553.45.
• The stock gained 13% cumulatively in four days, showing resilience despite broader market volatility.
• Silver prices surged to $64.31 per ounce globally, driving investor attention to metals-linked companies.

What’s Driving the Rally

Hindustan Zinc’s performance is tightly linked to the global silver market. The recent price surge reflects multiple factors:

• Record-breaking silver prices: Spot silver reached $64.31 per ounce, contributing to a year-to-date gain of 121%.
• Domestic futures rally: February silver contracts on MCX climbed to ₹1,99,220 per kilogram, pushing a 127% rise in 2025.
• Profit contribution: Silver accounted for 40% of Hindustan Zinc’s profitability in the September quarter.
• Industrial demand: Strong consumption from green energy sectors, declining inventories, and inclusion of silver in the US critical minerals list.
• Investor inflows: Rising investments in physical silver and ETFs show growing market confidence.
• Currency advantage: A weakening US dollar, following a 25 bps Fed rate cut, made metals more attractive to overseas buyers.

The combination of these factors has kept both gold and silver on track for their best annual performance since 1979, benefiting Hindustan Zinc’s market valuation.

Company Details and Earnings

Hindustan Zinc, under the Vedanta Group, stands as the world’s largest integrated zinc producer and a major force in the global silver market. The company’s business model relies on zinc, lead, and silver production, with silver increasingly driving earnings growth.

• Silver’s contribution to EBITDA has been significant, supporting the share price surge.
• The company has strategically hedged 120 tonnes of silver at $37 per ounce, while the remaining 280 tonnes will be sold at spot market rates, maximising potential gains from rising prices.
• Rising volumes and consistent production efficiency underpin the company’s strong market position.

Summary

Hindustan Zinc’s stock rally highlights the close interplay between commodity markets and company performance. With global silver prices climbing to historic highs and domestic demand robust, the company continues to capture market attention. Investors tracking metals and precious resources markets are keeping a close watch as Hindustan Zinc solidifies its position as a leading player in both zinc and silver production.