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Hindustan Zinc share price surged as much as 4%, touching an intraday high of ₹559.85 on NSE, in Wednesday's trading session after the Vedanta Group company reported strong quarterly results on Monday.
Hindustan Zinc share price opened at the day's high of ₹559.85, as compared to previous close of ₹538.40 on Monday.
Hindustan Zinc on Monday reported a consolidated net profit of ₹6,412 crore for the second quarter of FY27, registering a 142% year-on-year (YoY) jump from ₹2,649 crore in the corresponding quarter last year. The company’s shares surged to ₹560 apiece on the NSE on Wednesday morning.
The metal producer’s revenue from operations rose 76.5% YoY to ₹15,093 crore in the July-September quarter of FY27, compared with ₹8,549 crore in the year-ago period. The growth was driven by higher metal prices, increased production volumes, better realisations from by-products, and a stronger US dollar. Meanwhile, total expenses increased nearly 31.5% YoY to ₹6,895 crore during the quarter.
Hindustan Zinc’s EBITDA more than doubled year-on-year (YoY), rising 108% to ₹9,285 crore, while its EBITDA margin expanded to 62% from 52% in the corresponding period last year. The growth was supported by a 141% YoY surge in net silver sales to ₹4,111 crore and a 54% increase in zinc sales to ₹8,224 crore. Lead sales and other metal sales also rose 35% and 151% YoY, respectively.
Hindustan Zinc share price has remained largely flat over the past week, rising just 0.06%, but the stock has witnessed a sharper correction over the past month. The shares have declined 8.69% in one month and are down 11.70% year-to-date (YTD), indicating pressure on the stock in the near term.
Despite the recent weakness, Hindustan Zinc has delivered positive returns over longer periods, gaining 11.68% over the past year and 75.10% over three years. However, its five-year return stands at 57.97%, reflecting a more moderate gain over the longer investment horizon compared with its three-year performance.
According to Gaurav Garg, Head - Research, Lemonn, the stock’s technical structure remains cautious, with the chart indicating that a head-and-shoulders pattern had already formed, signalling weakening bullish momentum and the possibility of further downside.
“The ₹540– ₹550 zone remains an immediate resistance area, while ₹518– ₹522 is a crucial support zone. A sustained move above ₹560 could improve the recovery outlook, whereas a breakdown below ₹518 may trigger additional selling pressure,” Garg said.
Garg further recommended existing investors to consider holding with appropriate risk management, while fresh investors should wait for stronger price confirmation at 580. Going forward, global zinc and silver prices, production costs and the sustainability of earnings growth will remain key factors influencing the stock’s performance.
Meanwhile, Mahesh M Ojha, VP Research & Business Development at Kantilal Chhaganlal Securities, believes that Hindustan Zinc’s weekly trend remains bullish, indicating positive momentum in the stock.
“The next resistance levels are placed at ₹557, ₹574 and ₹590+, which could act as potential upside targets. Traders should maintain a stop-loss at ₹490 to manage downside risk while tracking the stock’s price movement,” Ojha said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.
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