has emerged as the standout performer among the latest additions to the Nifty Next 50 index, with a sharp rally of 13 per cent since the NSE announced the rejig on August 22.
Ahead of the official inclusion from September 30, the stock climbed from ₹425 to ₹483 on Tuesday, backed by heavy trading volumes, sectoral tailwinds and strong institutional flows.
Among other new entrants in the index, Mazagon Dock and Siemens Energy were up 2 per cent and 1 per cent at ₹2,751 (₹2,700) and ₹3,424 (₹3,374) while Solar Industries was down 10 per cent at ₹13,350 (₹14,845).
The index reshuffle added four new companies, while InterGlobe Aviation, Swiggy, Dabur and ICICI Prudential Life Insurance were removed.
Silver prices on MCX futures touched an all-time high of ₹144,179 per kg on September 29. According to Emkay research report, silver contributes about 20–25 per cent of HZL’s revenue but accounts for 35–40 per cent of EBITDA, making it a key margin driver.
A $1/ounce move in silver translates to a 1 per cent swing in EBITDA, given that 88 per cent of silver revenue is a direct pass-through to profitability since silver is produced as a by-product of zinc.
The rally in HZL stock also mirrors gains in the Nifty Metal index, which advanced due to rising bullion and base metal prices. HZL’s volumes have spiked ahead of the index inclusion as passive funds and institutional investors rebalance portfolios. The company’s peers such as Fresnillo and Grupo Mexico have already been re-rated on silver exposure this year, while HZL still trades at a relative discount, leaving room for further re-rating as its silver story gains traction, said various analyst reports.
The company delivered EBITDA of ₹17,400 crore last fiscal with margins of 53 per cent, and this is projected to scale to ₹22,000 crore EBITDA with 57 per cent margin by FY27 if current spot silver prices sustain. With annual silver output of 22.5 million ounce, HZL now ranks alongside global majors such as Fresnillo and Newmont.