Why Hindustan Zinc Share Price is Rising

Markets are trading higher today, 6 June 2025, after the RBI surprised the market by cutting the repo rate by 50 basis points. The country's central bank also cut the cash reserve ratio by 100 basis points.

The BSE Sensex was trading with gains of 498 points at 81,943 points. The NSE Nifty was up 163 points at 24,914 points.

The Bank Nifty surged more than 1%, following the RBI decision. Rate sensitive stocks like autos too gained with Maruti and Hero Moto Corp among the gainers.

Broader market indices like the Nifty Midcap 100 and Small Cap 100 also showed gains, climbing 1.3% and 3% respectively.

One stock that is rising sharper than the markets is the stock of Hindustan Zinc. Let's tell you some of the reasons for the same.

#1 Silver Prices Surge

Hindustan Zinc is India's only primary silver producer and among the top five globally. Silver prices have surged to record levels driven by escalating trade tensions and a weaker US dollar.

Any increase in silver prices, tends to benefit Hindustan Zinc directly. Silver prices like gold have seen a sustained rise in the last few months. This has raised optimism on the overall performance of Hindustan Zinc, which is also driving the stock price higher.

In addition to this production volumes at Hindustan Zinc of silver too have been keeping pace. In the fourth quarter of FY25, saleable silver production increased by 10% quarter-on-quarter to 177 tonnes, driven by higher production and liquidation of work-in-progress.

#2 Crisil Reaffirms Hindustan Zinc's Credit Ratings

Recently, the company announced that CRISIL has reaffirmed its credit ratings maintaining the ratings at CRISIL AAA/Stable for the company's bank facilities and debt programmes, along with a short-term rating of CRISIL A1+.

This reaffirmation reflects CRISIL's continued confidence in Hindustan Zinc's strong financial position, robust operational performance, and creditworthiness.

This development too went down well with the markets.

What Next?

The company has reported a strong growth on all parameters for Q4 2025. Hindustan Zinc reported its highest-ever fourth-quarter revenue of Rs 90.87 bn, up 20.4% YoY.

The net profit rose 47.4% YoY in Q4 2025 to Rs 30.03 bn, driven by higher revenue and lower cost of production.

The company aims to increase its metal production capacity from the current 1.1 million tonnes per annum (MTPA) to 2 MTPA within the next five years. This expansion aligns with India's growing steel capacity and infrastructure development, where zinc plays a vital role in steel galvanisation.

The company is also expanding in the mineral sector. Under the fifth tranche of critical & strategic mineral block e-auction, Hindustan Zinc has been declared preferred bidder for India's first Potash & Halite block in Rajasthan and Rare Earth Elements block in Uttar Pradesh.

This strategic win marks a significant milestone in Hindustan Zinc's muti-mineral growth journey, solidifying its position as a leading player in the critical minerals sector.

Earlier the company also received a letter of intent from Andhra Pradesh government for the Balepalyam Tungsten and Associated Minerals Block.

Hindustan Zinc's future is marked by significant capacity expansion, rising metal prices like silver, diversification into critical minerals, and entry into clean energy sectors.

How Shares of Hindustan Zinc have Performed Recently

Over the last one month, the share price of Hindustan Zinc has gained 21.6% from levels of Rs 413.35 to the current levels of Rs 502.85. In the past one year, shares of the company have lost 26.8%.

The stock hit a 52-week high of Rs 717.1 on 8 July 2024. The stock also hit a 52-week low of Rs 378.65 on 3 March 2025.

About Hindustan Zinc

Hindustan Zinc is the world's largest integrated zinc producer. It is also among the top 5 silver producer globally.

The company operates a fully integrated business model covering mining, smelting, and refining of zinc, lead, and silver, ensuring control over the entire value chain from ore extraction to finished products.

Hindustan Zinc is a subsidiary of Vedanta, which holds a 63.42% stake, while the Government of India retains 27.92% ownership. The company also produces silver and lead. It has forayed into critical minerals and clean energy sector.

To know more, check Hindustan Zinc's fact sheet and latest quarterly results. You can also compare Hindustan Zinc with its peers on our website.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...