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Shares of Hindustan Zinc (HZ) could likely benefit from Silver’s remarkable rally and is emerging as one of the biggest beneficiaries as prices of the precious metal continue to surge, up 63% so far this year to $47 per ounce — sharply higher than $34/oz in Q1FY26 and $30/oz in FY25, Emkay Global said in a note dated September 29.

Analysts believe the market is yet to fully price in the company’s exposure to silver, even as global peers such as Fresnillo and Grupo Mexico have already re-rated in 2025. With consensus expectations still trailing the rally, they see significant room for Hindustan Zinc’s valuation to catch up — a rating that would directly benefit parent Vedanta Ltd (VEDL), where the company accounts for 40% of consolidated EBITDA.

Also read: Nifty gets fresh look with 2 new stocks; Hero MotoCorp, IndusInd Bank drop out“Interestingly, silver is a by-product of zinc, which implies that 88% of silver revenue is a direct pass-through to EBITDA as the cost of production remains tied to zinc production. We retain BUY on VEDL, with a price target of Rs 525 per share,” the brokerage added. The forecast implies an upside potential of 22% from the last close.

HZ posted EBITDA of Rs 17,400 crore in FY25 with a margin of 53%. If spot prices of zinc and silver hold, the brokerage expects EBITDA to climb to Rs 22,000 crore with a 57% margin by FY27.

Globally, HZ is among the top silver producers, mining 22.5 million ounces annually — ahead of Grupo Mexico (12.1Moz) and not far behind leaders like Fresnillo (52.5Moz) and Newmont (28Moz). It operates in the first quartile of the global zinc cost curve with a 25-year mine life.

HZ also ranks number 1 globally in the S&P corporate sustainability assessment for metals and mining and is stepping up its energy transition plans, targeting a rise in renewable power use from 13% currently to 70% by FY28.Read more: $75 billion gone from Tata stocks in 2025 so far. What’s ailing India’s top conglomerate?

At about 10:30 am, shares of Hindustan Zinc were trading at their day’s high of Rs 480, higher by 3% from the last close on the NSE. The stock is up 8% on a year-to-date basis. Vedanta shares also traded at their day’s high of Rs 462, up 2.3%. The stock is up over 7% in the last 1 month.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)