Leading brokerages like JM Financial, Yes Securities, and Dolat Capital are bullish on Hindustan Zinc following better June quarter earnings.
Analysts pointed to the company’s ongoing capex cycle, volume expansion plans, potential in critical minerals and cost efficiency initiatives as key long-term growth drivers for the metal major.
As per Bloomberg data, the highest price target on Hindustan Zinc was given by brokerage Ventura Securities indicating a 32 per cent upside on the company’s last closing price of ₹445.
YES Research has maintained its ‘Buy’ rating with a target price of ₹551, valuing the stock at 11 times FY27E EV/EBITDA. The brokerage projects Revenue and EBITDA growth at 7 per cent and 11 per cent respectively over the FY25-27E period.
YES Research sees silver output as a key driver of earnings for the company going forward. The average silver price rose to $33.70/oz vs $31.90/oz in Q4FY25 and silver realisations also saw a 17 per cent year-on-year jump.
JM financials has set a target price of ₹550 based on planned capacity expansion and focus on renewable energy for cost optimisation. The contribution of renewable energy in the power mix increased to 19 per cent in Q1 FY26 compared to 13 per cent in FY25.
The cost of production guidance for Zinc was maintained at $1,025 to $1,050 for FY26.
Post the 2.50 lakh tpa expansion, the company expects revenue to reach ₹40,000 crore with EBITDA to be in the range of ₹21,000 crore.
Bank of America, Citi, Motilal Oswal, Systematix have also cited Hindustan Zinc’s recent wins of potash and rare earth elements blocks along with the existing tungsten block will aid critical mineral diversification.
Apart from the positive brokerage views, credit rating agency CRISIL has reaffirmed its AAA rating, reflecting the company’s leading position in the domestic zinc market, efficient and integrated operations and strong financial risk profile.
Published on July 22, 2025
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