Hindustan Zinc Share Price Target 2025: Vedanta Arm’s Stock Under Pressure! Falls 12% In A Week - Should You Buy Dip?

Hindustan Zinc Share Price: Vedanta-led Hindustan Zinc shares fell sharply on Wednesday, dropping 5.83% to Rs 458.05 on the BSE. Over the last week, the stock has lost nearly 12%, raising investor concerns.

According to NSE data, a large volume of 12.32 crore shares (around 7.97% of total public shareholding) were traded, with a total value of Rs 5,619 crore.

Media reports suggest Vedanta Ltd, the parent company, could be the seller, possibly offloading up to Rs 7,500 crore worth of shares through block deals.

Hindustan Zinc Expansion Plan

Amid the market buzz, Hindustan Zinc also announced a massive expansion plan, with a total capex (capital expenditure) of Rs 32,000–35,000 crore to double its metal production capacity to 2 million tonnes per annum (mtpa) by FY31.

The company has already approved Phase 1 of this plan, involving an investment of Rs 12,000 crore to expand zinc and silver capacity.

As part of this first phase, Hindustan Zinc will set up a new refined zinc plant of 2.5 lakh tonnes per year in Debari, Rajasthan. This will boost total refined capacity from 919 ktpa to 1,169 ktpa and mining capacity from 1.18 mt to 1.51 mt, along with increased silver refining.

The company plans to complete this phase in the next three years, while Phase 2—which will take capacity even higher—is expected by FY31, subject to board approval.

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Hindustan Zinc Share Price Target

However, not all analysts are optimistic. In a research note, brokerage Nuvama said, "The capex plan is a long-term growth enabler, but near-term earnings will still depend on metal prices. We value the stock at 8x FY27E EV/EBITDA and maintain a ‘REDUCE’ rating with a target price of Rs 403."

Nuvama also cautioned that although the new projects bring future growth visibility, the return on equity (RoE) could decline from the current 72% to about 18% post-expansion. Dividend payouts may also be reduced, with FY26–27 estimates revised to Rs 20 per share from Rs 25 earlier.

Vedanta Q4 Results 2025

Vedanta group company Hindustan Zinc Ltd (HZL) reported a strong performance for the March 2025 quarter, with its net profit rising 47.3% year-on-year to Rs 3,003 crore, helped by record metal volumes and lower production costs. In the same quarter last year, the company had posted a profit of Rs 2,038 crore.

The company’s revenue from operations increased 20% to Rs 9,087 crore, compared to Rs 7,549 crore in the year-ago period. However, overall expenses also rose 8.49% YoY to Rs 5,532 crore.

Hindustan Zinc is the world’s largest integrated zinc producer and among the top five silver producers globally. It dominates the Indian market with a 77% share in primary zinc and supplies to over 40 countries.

Its silver business, which is the second largest segment, saw a 24% growth in revenue, while revenue from zinc, lead, and other segments grew by 21%, 7%, and 40%, respectively, compared to the same period last year.

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