Hindustan Zinc share price has been rising for five consecutive sessions and has gained 16.37% so far in five days. The rallied after global brokerage firm Jefferies initiated coverage on the stock.
The multibagger stock has gained over 16% in a month and nearly 9% in the last six months. However, shares have given multibagger returns of 133% in the last five years.
Jefferies initiates coverage on Hindustan Zinc stock
Global brokerage firm Jefferies has given a ‘buy’ call on the stock with a target price of ₹660 per share.
The brokerage sees the company as well-positioned to gain from higher silver and zinc prices and anticipates robust earnings growth in the coming years.
Jefferies’ target price of ₹660 implies an upside potential of roughly 22%, including a dividend yield of around 4%. The firm noted that Hindustan Zinc offers an attractive exposure to the global surge in silver prices — which have risen over 120% in 2025 — along with steady improvements in zinc prices. Its low-cost mining operations, strong cash flows, and the increasing share of silver in total earnings underpin Jefferies’ positive outlook.
“We expect HZ’s EPS to rise at strong 22%/29% in FY26/FY27, and then by 7% in FY28; our FY26-28 EPS are 9-31% above street. Despite recent rally, HZ stock has lagged most of its global zinc and precious metal peers CYTD,” the firm said in its report.
The brokerage anticipates a strong surge in ’s earnings per share, forecasting growth of 22% in FY26 and 29% in FY27, followed by a further 7% rise in FY28. These projections are 9% to 31% above market consensus. Jefferies also highlighted that robust return metrics and healthy free cash flow generation underpin its positive outlook on the stock.
Jefferies noted that the valuation premium is driven by the company’s increasing exposure to silver, which now accounts for nearly 40% of its EBIT. The company aims to raise its silver production capacity by 4% to 830 tonnes per annum by Q2 FY29, while also expanding refined metal capacity by 34% to 1.5 million tonnes per annum.
The brokerage has factored in zinc prices of $3,225–3,250 per tonne for the period from H2 FY26 through FY28, about 4% lower than current prices. Silver prices are assumed at $56–60 per ounce over the same timeframe, representing a 3%–10% discount to spot levels. Despite these conservative assumptions, Jefferies remains confident about the company’s growth outlook.
For FY26–FY28, Jefferies projects annual free cash flow in the range of ₹8,000 crore to ₹14,800 crore, with return on equity expected to stay robust at 69%–85%, supported by strong margins and stable operations.
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