Hindustan Zinc, which is India’s largest silver-producing company and the world’s 4th largest integrated silver producer, has been in focus lately as its stock has soared 30 percent in the past month. The recent rally has largely been fueled by the Silver price rally.
Silver prices have again hit a new 52-week high of Rs. 1,06,436. Past week, silver had risen by 8.70 percent, and in June month alone, it has risen by 9.41 percent. In Indian markets, Hindustan Zinc and Vedanta have been the largest beneficiaries of this silver rally. Hindustan Zinc is the largest silver producer, and Vedanta is its parent company with a 63.42 percent stake.
Further, the company has announced that its Board of Directors will meet on Wednesday, June 11, 2025, to consider and approve the first interim dividend for the financial year 2025–26. If declared, the record date to determine eligible shareholders will be Tuesday, June 17, 2025. The latest Interim Dividend given by the company was on 28th August of Rs. 19 per share.
Trade Brains Portal has given a target of Rs. 630 for the share, which translates to an Upside of 20 percent from current levels of Rs. 525 per share.
Financial Highlights
The company reported a 20.37 percent YoY increase in revenue from Rs. 7,549 Crore in Q4FY24 to Rs. 9,087 Crore in Q4FY25. On a QoQ basis, the company reported an increase of 5.49 percent in revenue from Rs. 8,614 Crore in the previous quarter.
Their Net profit saw an increase of 47.35 percent YoY from Rs. 2,038 Crore to Rs. 3,003 Crore for the same period. On a QoQ basis, the company reported an increase of 12.13 percent in Net profit from Rs. 2,678 Crore in the previous quarter.
The company reported a strong operational and financial performance in FY25, achieving its highest-ever production of mined metal at 1,095 kt and refined metal at 1,052 kt. It also recorded its highest domestic zinc sales of 603 kt, capturing a dominant 77 percent market share. Reserves surpassed 13.1 Mt (net of 1.2 Mt production), taking total reserves and resources to 29.6 Mt.
EBITDA grew 28 percent to Rs 17,465 crore with a robust margin of 51 percent. The company delivered a strong pre-capex free cash flow of Rs 13,784 crore with a record return on capital employed at 58 percent.
With a clear capex roadmap and upcoming projects like the Roaster expected in Q1 FY26, the company aims to sustain momentum, targeting 1.125 MTPA mined metal and 1.1 MT refined metal production, along with 700–710 tons of silver. Expected growth capex is in the range of $225–250 million, and zinc production costs are projected between $1,025 and $1,050 per ton.
Important Levels for the Stock & Silver Price Risks
Hindustan Zinc’s recent sharp price rally, surging nearly 30 percent in just one month, has drawn attention, especially as silver prices trade near all-time highs. Since a significant portion of the company’s revenue comes from silver, its performance is closely tied to global silver trends. However, silver’s dual role as both an industrial metal and a precious metal investment asset means its price is often volatile.
In a slowing global economy, high silver prices may not be sustainable, especially if industrial demand softens or investor sentiment shifts due to changing interest rate policies or inflation expectations.
If silver prices face a pullback or correction, it could pose a downside risk to Hindustan Zinc’s stock, making the current rally potentially fragile. Investors should remain cautious and monitor macro indicators and silver demand outlooks.
Hindustan Zinc’s stock has given a strong breakout from its range of 100 points range, from Rs. 380 to Rs. 480. Its range breakout is also followed by it breaking the 200 DMA level with strong volumes.
Stock has reached the immediate resistance level of Rs. 525, the next minor resistance for the Stock is Rs. 560, followed by Major Resistance at Rs. 630 Levels. As the stock has recently shown a huge rally, the immediate support zone is at Rs. 475 to Rs. 465 levels, which is also the range breakout zone.
About the Company
Established in 1966, Hindustan Zinc Ltd., a Vedanta Group company, is the world’s largest integrated zinc producer and is among the top 5 silver producers globally. The company supplies to more than 40 countries and holds a market share of about 77 percent of the primary zinc market in India. With a total R&R (reserves and resources) base of 453.2 million tonnes and an
average zinc-lead grade of 6.5 percent, its mine life is over 25 years. It is among the top 5 silver producers globally, with an annual capacity of 800 MT. The stock has a dividend yield of 6 percent.
As per the latest shareholding data, the Promoter holds the majority stake in the company at 63.42 percent, followed by the Government of India with a 27.92 percent stake. Domestic Institutional Investors hold 4.14 percent, while the Public and Foreign Institutional Investors hold 3.10 percent and 1.43 percent, respectively.
Written By Abhishek Das
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