Hindustan Zinc becomes India’s most valued metal company on silver price rally; m-cap crosses Rs 3 lakh crore

A dramatic threefold jump in silver prices over the past year has vaulted Hindustan Zinc Ltd to the top of India’s metals pack by market capitalisation. The rally has lifted the company’s valuation to about Rs 3.2 lakh crore, allowing it to overtake several large peers, including its parent company, Anil Agarwal-led Vedanta.

Shares of Hindustan Zinc, one of India’s largest producers of the white metal, jumped over 6% during Friday’s session, taking its year-to-date gains beyond 15%. The surge pushed the company’s market value past Rs 3.2 lakh crore, marginally ahead of rival JSW Steel Ltd. The stock eventually ended the day at Rs 699 on the BSE, up 4.66%.

Hindustan Zinc ranks among the leading silver producers, with an annual output of 22.5 million ounces — ahead of Grupo Mexico’s 12.1 million ounces and not far from top players such as Fresnillo at 52.5 million ounces and Newmont at 28 million ounces. The company also operates in the lowest quartile of the global zinc cost curve and has a mine life of about 25 years.


Can investors buy?

In a recent report, HSBC upgraded the stock to Buy from Hold and raised its target price to Rs 750 per share, implying an upside of over 12% from current levels. The brokerage values Hindustan Zinc at 11x FY27E EV/EBITDA, up from 9.5x earlier, placing it at the higher end of its five-year trading range of 5–11x. The valuation reflects the company’s strong balance sheet and a stable-to-improving outlook for LME zinc and silver prices. “We see further earnings upside potential from spot LME zinc and silver prices,” HSBC said.

IIFL Capital, following the company’s Q3 earnings last week, initiated coverage on Hindustan Zinc with an Add rating and a target price of Rs 712. The management maintained its silver volume guidance for FY26 at 680 tonnes (±10 tonnes). While the cost of production stood at $940 per tonne in 3Q, full-year cost guidance remains at $950–1,000 per tonne, reflecting higher mine development activity and grade volatility.

For FY26, capex is guided at $700 million, split between $400 million for maintenance and $300 million for growth, with capex expected to rise further in FY27 and FY28 to support expansion.

Hindustan Zinc Q3 snapshot

The company reported its highest-ever quarterly topline and bottom-line growth in Q3, backed by a 4% YoY growth in its mined metal production. The Vedanta arm's consolidated net profit jumped 46% to Rs 3,916 crore compared to Rs 2,678 crore in the year ago period.

The company's total revenue from operations in Q3FY26 was also its highest-ever quarterly revenue at Rs 10,980 crore, up 27% from Rs 8,614 crore posted in the corresponding quarter of the last financial year.

Its mined metal production in the quarter under review stood at 276 Kt, remaining its highest-ever for the third quarter. It was up 7% QoQ growth.

The profit after tax (PAT)s was up 48% QoQ while total revenue increased 28% sequentially.

Also read: IndusInd Bank Q3 Results: PAT drops 89% YoY to Rs 161 crore; NII falls 13%

Hindustan Zinc, in its filing to the exchanges, reported that its quarterly cost of production was the lowest in 5 years, standing at $940 per tonne, which is 5% better QoQ and 10% YoY.

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