Prime Highlight
- Shares of Hindustan Zinc surged over 5.5% to a fresh 52-week high, driven by a sharp rally in silver prices and renewed investor confidence.
- The stock continues to benefit from silver’s strong momentum, with precious metals emerging as a key profit driver for the company.
Key Facts
- Hindustan Zinc shares rose to Rs 705 on the BSE, while silver prices on MCX climbed over 2.5% intraday to around Rs 3.35 lakh per kg.
- In Q3 FY26, precious metals, led by silver, accounted for 44% of the company’s total profits, and the stock has gained more than 56% over the past six months.
Background
Shares of Hindustan Zinc Ltd surged sharply on Friday, rising as much as 5.57 per cent to hit a fresh 52-week high of Rs 705 on the BSE. The strong rally came a day after the stock had closed nearly 4 per cent lower, marking a sharp turnaround in investor sentiment.
The latest rise in the mining major’s share price was driven by a strong rally in silver prices. On the Multi Commodity Exchange (MCX), silver opened higher at Rs 3.33 lakh per kg, compared with the previous close of Rs 3.27 lakh per kg. By mid-session, prices were trading 2.56 per cent higher at Rs 3.35 lakh per kg, after touching an intraday high of Rs 3.40 lakh per kg.
Hindustan Zinc, a subsidiary of Vedanta, has delivered strong returns to investors, gaining over 56 per cent in the past six months. Market participants said the stock continues to benefit from rising metal prices, especially silver, which has seen renewed momentum after a brief pause.
According to the company’s Q3 FY26 investor presentation, Hindustan Zinc is India’s only integrated and listed silver producer. This unique position allows the company to benefit directly from the ongoing upcycle in silver prices. The presentation also shows a shift in the company’s earnings profile. In the third quarter of FY26, precious metals, led by silver, contributed 44 per cent of the company’s total profits, highlighting silver’s growing importance as a core profit driver.
Ponmudi R, CEO of Enrich Money, said silver prices have reached new all-time highs near $98.92 and are now consolidating after mild profit booking. He added that strong demand from solar power, electric vehicles, AI infrastructure, and electronics continues to support prices, along with safe-haven buying.
According to him, a decisive breakout above the $99–$100 level could push silver prices higher in the coming months, keeping the medium- to long-term outlook positive.
