Overview:

• Hindustan Zinc share price rose 6 % on an intra-day basis and touched an year-high price of Rs. 553.45.

• The global price of silver reached $64.31 per ounce, and futures traded at Rs 1,99,220 per kg boosting the investment in metal stocks like Hindustan Zinc. 

• The trading volume of the stock rose sharply to 16.8 million shares, exceeding average levels.

Hindustan Zinc share price rose 6% in intraday and reached a new 52-week high at Rs. 553.45 on December 12. This indicated an amazing gain of 13% within four trading sessions. It was one of the best performers in the metal sector today. The stock was trading at Rs. 551.20 with an increase of 5.46 % at press time. The stock rose on Fed rate cut buzz and silver price surge. Let’s explore Hindustan Zinc share price analysis based on Moneycontrol data.

Record-Breaking Silver Prices Give Massive Boost

One of the main driving forces for Hindustan Zinc shares’ uptrend has been the monumental increase in silver prices on global as well as local fronts. Internationally, spot silver reached an all-new record high of $64.31 per ounce, registering a 121% equity gain so far this year.

On local exchanges, MCX February silver futures touched an all-new historic high price of Rs. 1,99,220 per kilogram. This brought December gains up 16%, taking 2025 performance to an astonishing 127%.

Moreover, this jump is driven by a rising demand for industrial production, primarily from the clean energy industry, and declining stocks, with silver being included as a critical metal on the US list. Also, the latest 25 bps rate cut by the US Federal Reserve, which made the dollar hit an eight-week low, boosts precious metals. As gold and silver are set for their biggest yearly gain since 1979, sentiment on metal miners remains highly positive.

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Strong Fundamentals

Hindustan Zinc stock has a trading volume of 16.85 million with a VWAP of Rs. 543.30. The market capitalisation stood at 2.32 lakh crores with a healthy dividend yield of 5.26%. Its price with reference to its trailing twelve months' EPS of 25 shows a YoY growth of 20.88%. The stock has a PE ratio based on its TTM numbers at 22.04, just like its peers, and a P/B ratio at 17.47.

Hindustan Zinc share price chart on Moneycontrol shows gains of 6.57% at the time of writing:

Brokerages Grow Pessimistic on Earnings Growth 

Analysts have raised forecasts for the Hindustan Zinc share price. B&K Securities initiated coverage on Hindustan Zinc shares with a ‘Buy’ recommendation and a price target of Rs. 610. The reason behind the upgrade could be due to the company’s cost savings, increase in metal production, EBITDA contribution from silver, and its strategy of hedging.

The company has hedged 120 tonnes of silver at $37 per ounce for the remaining period of the year, and the remaining 280 tonnes will be sold at spot rates, thus realising an immediate benefit from the price escalation. The contribution percentage of silver EBITDA margins is predicted to escalate from 28% in FY25 to 42% in FY27.

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Broader Metal Sector Strength Adds Support 

The uplift in Hindustan Zinc share price is supported by growing investor confidence in the metal stocks. Nifty Metal index jumped more than 2% at press time, extending its third consecutive session of gains, further strengthening market sentiment. China's proposal for ‘proactive’ fiscal policy measures, a drop in the US dollar, and stable global rates have intensified commodity demand. 

FAQs

1. Why did Hindustan Zinc's share price rise today?

Hindustan Zinc is primarily moving up as silver prices have reached historic highs both internationally and domestically. As silver accounts for a large proportion of its earnings, it increases profitability. Industry performance and trends on theStreet have acted as an added catalyst.

2. What effect did growing silver prices have on Hindustan Zinc stock?

Silver is among the most lucrative metals for Hindustan Zinc. As silver prices rise, Hindustan Zinc will make more per tonne, particularly on the unhedged share sold at spot rates. As demand continues to escalate and stocks dwindle, silver’s performance will continue to have a remarkable impact on the predicted profitability of Hindustan Zinc.

3. What are market forecasts for Hindustan Zinc in the next few months?

Many analysts have turned more bullish on the stock. Some have given a target price as high as 610 Rs. on its excellent cost control, increased volumes, and EBITDA contribution from silver sales. Looking at EBITDA contribution from silver sales alone, more than 40 % can be realized.

4. Is Hindustan Zinc still considered a good long-term investment option?

Hindustan Zinc is seen as a stable metal manufacturer and enjoys sound fundamentals. It provides an attractive dividend yield and supports consistent earnings growth. Nonetheless, it depends on global demand, silver market prices, and mining production.

5. Which risks should an investor be aware of before acquiring shares of Hindustan Zinc stock?

It should be noted that metal prices fluctuate considerably. Should silver or zinc prices drop, it may affect this business's profitability. Exchange rate fluctuations, government regulations, and market conditions abroad could also affect it. It is necessary to monitor global commodity prices before investing.