Hindustan Zinc Surges 6.24% To Hit All-Time High, BSE Metal Index Gains 1% | R Business Stock Update

The share price of Hindustan Zinc Ltd surged as much as 6.24% on Friday, January 21, to hit a lifetime high of Rs 709.45 apiece after its Q3FY26 result beat estimates on all front buoyed by commodity pricing support.

Brokerage house Yes Securities maintained a bullish call on this top resources manufacturer "marked by a clear sequential recovery in volumes and sharp margin expansion, supported by a favourable pricing environment and sustained cost discipline"

"We expect Revenue, EBITDA and PAT to grow at a CAGR of 10.4%, 15.7% and 18.0% respectively over FY25-28E. We rollover our estimates to FY28E and value the company at 11x FY28E EV/EBITDA (earlier 11x H1FY28E EV/EBITDA), arriving at our revised target price of Rs 725/share (earlier 551/share)," it said.

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According to a brokerage note, the Vedanta Group subsidiary's "revenue from operations for the quarter stood at Rs 109,220mn (vs our estimate of Rs 100,170mn), up 28.1% QoQ / 27.7% YoY, driven by improved LME Zinc and silver prices. Better realizations across zinc and by-products supported topline along with strong volume growth sequentially."

Meanwhile, its "mined metal production stood at 276kt (vs 258kt in Q2FY26). Refined metal production improved to 270kt in Q3FY26 (vs 247kt in Q2FY26). Silver volumes came in at 158 tons, up 7.5% QoQ as H1FY26 had a low volume base. On the pricing front, realizations for both Zinc and Silver remained strong reflecting a 28.1% QoQ jump in the company’s Q3FY26 topline."

Mined metal production stood at 276kt (vs 258kt in Q2FY26). Refined metal production improved to 270kt in Q3FY26 (vs 247kt in Q2FY26), according to Yes Securities.

Silver volumes came in at 158 tons, up 7.5% QoQ as H1FY26 had a low volume base. On the pricing front, realizations for both Zinc and Silver remained strong reflecting a 28.1% QoQ jump in the company’s Q3FY26 topline.

As of 11:50 am, the stock price of Hindustan Zinc rose as much as 5.50% to Rs 704.50 apiece, while the BSE Metal index was 0.59% higher at 38,441.80 level. Meanwhile, BSE Sensex was trading 0.35 % lower at 82,023.05 level.