Shares of Hindustan Zinc drew investor attention on Monday, December 29, 2025, as global silver prices reached an all-time high of around $82 per troy ounce, before slightly retreating toward the $80 level. The historic surge in silver has been driven by tight supply, rising demand across industries, and expectations of easier monetary policy by central banks, factors that have underpinned the precious metal’s sharp rally this year.
Hindustan Zinc, a top-five global silver producer with annual capacity near 800 tonnes, stands to benefit significantly from elevated silver prices. Silver contributes a meaningful share of the company’s profitability, accounting for roughly 38 % of earnings before interest and tax (EBIT), making the metals giant attractive to investors looking for commodity-linked opportunities.
Analysts have highlighted the strong earnings outlook for Hindustan Zinc amid the metals upswing. Global brokerage Jefferies has initiated coverage with a Buy call and set a target of Rs. 660, seeing the company as a clear beneficiary of higher silver and zinc prices supported by its low-cost production profile. While the stock has already delivered strong gains in 2025, Jefferies projects continued earnings growth, with EPS expected to rise sharply through FY27 and FY28.
The recent rally in silver, up more than 170 % this year, combined with anticipated global market deficits, suggests that Hindustan Zinc’s earnings and EBITDA may receive a significant boost in the coming quarters. Meanwhile, improvements in cost efficiency—such as lower zinc production costs due to better ore grades and broader use of domestic energy sources—further support the company’s robust financial performance.
What investors should consider: The strong correlation between silver prices and Hindustan Zinc’s performance makes the stock attractive for investors seeking exposure to the precious metals rally. However, market participants should also weigh valuations, broader commodity market volatility, and potential future shifts in supply–demand dynamics before making investment decisions.
