Archive · 15 Dec 2025
Jefferies Predicts 18% Upside for Hindustan Zinc
Jefferies, a financial services company, has started watching Hindustan Zinc, a company that mines zinc and silver.
They think the stock could go up by 18% and have given it a 'Buy' rating.
This is because silver and zinc prices are going up, and Hindustan Zinc is one of the cheapest producers.
They also expect the company to make more money in the next few years.
The company is also planning to use more renewable energy and increase its production capacity.
However, there are some risks, like prices going down or problems with their mines.
Jefferies initiates coverage on Hindustan Zinc with a 'Buy' rating and a target price of Rs 660, predicting an 18% upside.
Hindustan Zinc benefits from higher silver and zinc prices, with silver accounting for 38% of EBIT in FY25, expected to rise to 44% by FY27.
Strong earnings growth is expected, with EPS growth of 22% in FY26 and 29% in FY27, supported by low production costs and strategic capacity additions.
The company aims to increase renewable energy usage to 70% by FY28, reducing power costs and supporting its strong financial position.
Hindustan Zinc holds a dominant position in the domestic market, with a 77% share of India's primary zinc market and plans to expand production capacity significantly by 2030.
- Who
- Hindustan Zinc, Jefferies
- What
- Jefferies initiates coverage on Hindustan Zinc with a 'Buy' rating and a target price of Rs 660, predicting an 18% upside.
- When
- Current and projected financial data up to FY28 and beyond.
- Where
- Global markets, with a focus on India.
- Why
- Higher silver and zinc prices, strong earnings outlook, low production costs, and strategic capacity additions.
- Stock Rating
- Buy
- Target Price
- Rs 660
- Upside Potential
- 18%
- Silver Price
- $62 per troy ounce
- Zinc Price Increase
- 33% since April 2025
- Silver Production
- 800 tonnes annually
- Silver's Share of EBIT
- 38% in FY25, expected 44% by FY27
- EPS Growth
- 22% in FY26, 29% in FY27
- Free Cash Flow
- Rs 80-148 billion annually over FY26-FY28
- Return on Equity
- 85% in FY26-FY27, 69% in FY28
- Net Debt to EBITDA
- 0.1 times in FY25
- Renewable Energy Target
- 70% by FY28
- Refined Metal Capacity
- 1.5 million tonnes by Q2 FY29
- Silver Capacity
- 830 tonnes by Q2 FY29
- Domestic Market Share
- 77% of India's primary zinc market
