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Hindustan Zinc jumps nearly 6% as zinc and silver outlook improves

The stock move followed a Jefferies target increase to ₹750 and reports that DIPAM is not pursuing a government-led stake sale right now.

Reported · Written up by our desk · Emerging Markets

Hindustan Zinc shares surged nearly 6% on Wednesday, helped by an improved outlook for zinc and silver, while easing speculation around a potential government-led stake sale, according to LiveMint Markets.

LiveMint Markets said the rally was driven by Jefferies India raising its target price to ₹750 from ₹660, citing better conditions for both metals. The outlet also pointed to reports that DIPAM is not looking at a government-led stake sale in Hindustan Zinc at present, after earlier market attention following Hindustan Copper’s offer-for-sale.

After a 19% run over the past month, LiveMint Markets highlighted the key question for investors is whether commodity strength can sustain earnings. The company’s own outlook, based on Woodmac projections it cited, includes lower LME zinc price forecasts for 2027 and 2028 compared with 2026.

LiveMint Markets added that spot zinc is now about 15% above the June-quarter average and at a four-year high, while silver has rebounded about 23% from July lows. It noted zinc support from multi-year-low inventories, negative treatment charges, mine suspensions in China, and sulphur availability concerns after a fire at a sulphuric acid plant in South Korea. Jefferies also raised FY27 to FY29 EPS estimates by 10% to 11%, and expects a further potential upgrade in FY28 if spot zinc and silver hold.

Latest closeSilver $68.61 ▼0.0%|Copper $6.713 ▲0.0%

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