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Brokerages raise Hindustan Zinc targets after stronger June-quarter

HSBC lifted its target to ₹770 from ₹730, while other brokerages pointed to EBITDA margins staying above 58% despite a seasonal drop in production volumes.

Reported · Written up by our desk · Asia

Hindustan Zinc’s stronger-than-expected June-quarter earnings have prompted multiple brokerages to reiterate bullish views and raise target prices, citing a favorable pricing environment for zinc and silver, record-low production costs, and progress in its project expansion pipeline.

According to LiveMint Markets, HSBC reiterated a Buy rating and increased its target price to ₹770 from ₹730, the highest among the brokerages. Other brokerages followed suit, with YES Securities upgrading the stock to Buy from Add and setting a revised target price of ₹660, while Jefferies maintained its positive stance after saying June-quarter performance came in ahead of expectations.

Brokerages also linked the earnings beat to cost control and pricing gains, noting Hindustan Zinc’s ability to sustain EBITDA margins above 58% even as production and sales volumes fell seasonally. Jefferies said improving production in the second half of FY27, along with continued cost discipline and a supportive commodity price backdrop, should help sustain earnings momentum.

LiveMint Markets added that Jefferies increased expectations for EBITDA, and that IIFL Capital maintained a Buy rating with an unchanged target of ₹722. IIFL continues to value the company at 10x FY28 estimated EBITDA, using assumptions including zinc at US$3,000 per tonne and silver at US$60 per ounce for FY27-28.

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