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HomeMarket NewsHindustan Zinc shares near 52-week high; Find out how big an influence is Silver
Hindustan Zinc is the only pure listed Silver play in the country as nearly 40% to 45% of its Earnings Before Interest and Tax (EBIT) comes from Silver.
Shares of Vedanta-unit Hindustan Zinc Ltd. were back above the mark of ₹500 for the first time since October, having made an intraday high of ₹501.15 on Monday, December 1.
This is the fourth straight day of gains for the stock.
The stock is also moving on strong volumes, with 40 lakh shares already changing hands in the first 30 minutes of Monday's trading session.
Shares of Hindustan Zinc are moving in tandem with international Silver prices, that are trading at record high levels. Silver prices crossed the mark of $58 an ounce for the first time recently.
Hindustan Zinc is the only pure listed Silver play in the country as nearly 40% to 45% of its Earnings Before Interest and Tax (EBIT) comes from Silver.
Hopes of a Fed rate cut, industrial demand, and inventory shortfall are also aiding the price rally in Silver.
"While the ongoing silver rally providing significant upside, particularly as we advance our long-term plan to scale silver production to 1,500 tonnes from the current 700 tonnes through our 2x growth capex initiatives," the Hindustan Zinc management said during its earnings call. "We are uniquely positioned to capitalize on this cycle," the company stated.
Hindustan Zinc is owned nearly two-thirds by Vedanta, while a significant chunk is owned by the government of India, leaving very little free float in the market.
Shares of Hindustan Zinc are currently trading 2.3% higher on Monday at ₹496.1. The stock is up 12% so far in 2025.
