HSBC has maintained its buy rating on Hindustan Zinc with a target price of ₹750 per share, citing a strong third-quarter performance and improving earnings visibility into the March quarter.
The brokerage said Hindustan Zinc delivered a 3Q earnings beat, supported by higher volumes and lower operating costs, which helped offset volatility in base metal prices. HSBC highlighted that the earnings outlook has further strengthened since the quarter-end, driven by a sharp rally in silver prices and a weaker Indian rupee.
HSBC noted that spot silver prices are currently around USD 93 per ounce, significantly higher than the 3Q average of USD 54.7, creating meaningful upside to near-term earnings. Combined with currency tailwinds, the brokerage expects profitability to improve further even without aggressive volume assumptions.
Looking ahead, HSBC expects 4QFY26 to be even stronger, supported by higher production volumes and sharply higher silver realisations. The brokerage believes silver’s growing contribution to earnings is increasingly important for Hindustan Zinc’s financial profile, particularly as cost discipline remains intact.
HSBC remains constructive on the stock, citing strong operational execution, favourable commodity dynamics and improving earnings momentum in the near term.
Disclaimer: The views and recommendations above are those of HSBC. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
