Shares of Hindustan Zinc surged impressively on Friday, January 23, climbing over 6% to touch a fresh record of ₹709.95. This sharp move comes as silver prices continued their historic rally, benefiting from rising geopolitical uncertainties and growing concerns over global economic stability.
The rally in silver has positioned Hindustan Zinc, one of India’s largest producers, as a key beneficiary in the ongoing precious metals surge. Investors and market watchers alike have been closely tracking the stock as it mirrors the momentum in silver prices.
Market Performance: Silver Hits New Peaks
MCX Silver Futures continued their upward march on Friday, jumping nearly 4% to a new all-time high of ₹3,39,927 per kilogram. The strong rally was driven by several global factors:
- Weaker US dollar, making precious metals more attractive
- Rising geopolitical tensions, boosting safe-haven demand
- Renewed policy concerns over US Federal Reserve independence
In international markets, silver climbed 2.5% to $98.60 per ounce, inching closer to the psychologically significant $100 mark.
Global Factors Driving Silver’s Surge
The silver rally has been influenced by a mix of macroeconomic and geopolitical developments:
- US President Donald Trump softened earlier warnings on trade tariffs with European nations, easing immediate trade concerns.
- Developments in Greenland included US missile deployments, mining rights agreements, and an enhanced NATO security presence.
- Investors are keeping a close eye on the US Federal Reserve as markets await news on who will take over as the next chairperson. Speculation over potential dovish policies has strengthened the appeal of silver as a non-yielding, safe-haven asset.
Hindustan Zinc Share Performance
The surge in Hindustan Zinc stock reflects the broader silver-led momentum:
- 52-week low: ₹378.65 (March 2025)
- Year-to-date gains: 48% over the past year
- Past six months: 57% rise
- Past three months: 45% rise
- Past one month: 25% rise
- Five-year return: Approximately 155%
The stock’s trajectory highlights its transformation into a multibagger, driven by consistent operational performance and rising commodity prices.
Hindustan Zinc Q3FY26 Results
Hindustan Zinc delivered a robust Q3FY26 performance, reflecting strong production and favorable commodity prices:
- Standalone Net Profit: ₹3,879 crore (46.5% YoY increase from ₹2,647 crore)
- Revenue from Operations: ₹10,922 crore (27.5% YoY increase from ₹8,556 crore)
- EBITDA: ₹6,055 crore (34.7% YoY increase from previous year)
- EBITDA Margin: 55% (up from 52% YoY)
Operational Highlights:
- Record third-quarter mined metal production: 276 kilo tonnes
- Record refined metal production: 270 kilo tonnes
- Silver output: Increased 10% sequentially, contributing 44% of total EBIT
- Zinc production costs (excluding royalty): Dropped to USD 940 per tonne, the lowest in five years, aided by lower power costs and higher by-product realisations
This quarter marked Hindustan Zinc’s highest-ever quarterly revenue and profit, highlighting the combined impact of increased metal output, stronger zinc and silver prices, and cost efficiency.
Key Takeaways
- Hindustan Zinc continues to benefit from the precious metals rally, particularly silver.
- The stock has consistently outperformed over the past year and has turned into a long-term wealth creator.
- Operational efficiency, lower costs, and rising metal output remain key drivers behind the strong quarterly performance.
In summary, the ongoing rally in silver has propelled Hindustan Zinc shares to record levels, backed by strong operational metrics and favorable global market conditions. As silver continues to attract safe-haven flows amid geopolitical and economic uncertainties, Hindustan Zinc stands out as a prominent participant in the metals market, reflecting a well-synchronized performance between commodity prices and stock market trends.
Source: Livemint
Easy & quick
Leave A Comment?