HINDZINC

Hindustan Zinc shares surged over 5% today

Hindustan Zinc shares surged over 5% today (26 Aug 2026) after the government clarified it is not planning a stake sale, easing OFS fears. Brokerage Jefferies raised its target price to ₹750, citing strong zinc and silver prices, implying ~26–31% upside potential. 📊 Stock Market Highlights Current Price Movement: Hindustan Zinc rose to ₹623 intraday, up 5% from the previous close of ₹592.60. Brokerage View: Jefferies upgraded its target price from ₹660 to ₹750, maintaining a Buy rating. Upside Potential: ~26–31% including dividends, with a yield of ~4%. Government Clarification: DIPAM confirmed no stake sale planned, removing OFS overhang. ⚒️ Commodity & Earnings Drivers Zinc Prices: Up 31% since March, now around $3,966/tonne, supported by supply constraints and declining ore grades. Silver Prices: Rebounded 23% from July lows, strengthening Hindustan Zinc’s earnings outlook. Global Market Shift: International Lead and Zinc Study Group revised 2026 zinc balance from a 271 KT surplus to a 19 KT deficit, indicating tighter supply. Earnings Upgrade: Jefferies raised FY27–29 EPS estimates by 10–11%, now 16–23% above consensus. 🏢 Corporate & Financial Updates Q1 FY27 Results (July 2026): Net Profit: ₹5,469 crore, up 145% YoY. Revenue: ₹13,747 crore, up 77% YoY. EBITDA: ₹8,074 crore, up 109% YoY. Production: Record mined metal output of 268 KT. Dividend: Interim dividend of ₹11/share (550%), totaling ₹4,648 crore. Leadership Change: Amarendu Prakash appointed CEO (effective Aug 1, 2026), ex-Chairman of SAIL. Expansion Plan: “HZL Vision 2.0” targets doubling production to 2 MTPA over 5 years with ₹40,000–50,000 crore capex