gained around 2 per cent in early trade on Monday after global brokerage Jefferies initiated coverage on the stock with a ‘buy’ rating. The stock climbed to a fresh 52-week high of ₹571.80 on the during the session, reflecting strong investor interest following the positive brokerage call.
The stock opened at ₹562.10 on the NSE compared with its previous close of ₹561.65. After hitting the day’s high, some profit-taking emerged, and at 12.20 pm, Hindustan Zinc was trading nearly flat at ₹566.50.
Jefferies has initiated coverage on Hindustan Zinc with a ‘buy’ recommendation and a target price of ₹660, implying meaningful upside from current levels. The brokerage’s constructive view is anchored in the company’s strong cash flow profile, attractive dividend yield and increasing contribution of silver to overall earnings.
In its initiation note, Jefferies highlighted Hindustan Zinc’s position as the world’s largest integrated zinc producer and one of the top global silver producers. The brokerage expects silver to play a growing role in profitability over the medium term, supported by favourable long-term demand dynamics. It also pointed to the company’s cost-efficient operations, robust balance sheet and consistently high return on equity as key strengths.
Jefferies further noted that Hindustan Zinc’s strong free cash flow generation supports healthy dividends, making the stock attractive for investors seeking a combination of growth and yield. The initiation-driven rally pushed the stock into focus on Monday, with investors reacting positively to the long-term outlook outlined by the global brokerage.