Hindustan Zinc share price jumped 4.7 percent in today's session as investors have turned bullish on the stock. Hindustan Zinc touched intraday high at Rs 532.70 before closing the session at Rs 526. The stock is looking bullish on technical charts and we can expect further strength in the counter. Hindustan Zinc Ltd. (HZL), a key subsidiary of Vedanta Limited and a dominant force in India's primary zinc market, is enjoying a remarkable upswing in investor sentiment. This momentum is fueled by a rally in silver prices and anticipation surrounding an interim dividend announcement slated for June 11, 2025. With a commanding 77% market share in zinc and a position among the top global silver producers, HZL's latest operational and financial metrics underscore its resilience. Despite a mixed analyst outlook, the company’s fundamentals, strategic growth trajectory, and attractive dividend yield continue to make it a significant player in the Indian mining and metals sector.

India’s Zinc Powerhouse with Global Silver Clout

As India’s largest integrated zinc producer and the world’s fourth-largest silver miner, Hindustan Zinc commands 77% of India’s primary zinc market. Its scale, cost-efficiency, and high-margin operations have enabled consistent profitability despite commodity market volatility.

In fiscal year 2025, the company generated Rs. 34,083 crore in revenue, marking an 18% year-on-year increase. Value-added product sales reached historic highs, underscoring its strategic focus on profitability over pure volume.

In the March 2025 quarter alone, HZL posted a consolidated net profit of Rs. 3,003 crore, up 47.3% year-over-year. Revenue from operations rose to Rs. 9,087 crore, and the EBITDA margin improved to 53%, expanding by a significant 500 basis points.

Investor Optimism Sparks Market Momentum

HZL stock has captivated market watchers with its recent upswing. Between June 6 and June 9, 2025, shares jumped over 14% in three sessions, with an intraday peak of Rs. 532.50 on the BSE. The rally reflects strong investor conviction in an expected interim dividend declaration at the company’s board meeting scheduled for June 11, 2025.

1-Month Surge: ~28% gain

YTD Performance: +18%

2-Year Return: +75%

5-Year Return: Over 200%

Current Price Range: Rs. 522–525

Yet, on a trailing 12-month basis, the stock remains 23–28% below its 52-week high of Rs. 717.10.

Dividend Legacy and Promoter Stability

HZL has maintained a stellar dividend track record. In the past year, it paid out an equity dividend of Rs. 19 per share, translating to a dividend yield of approximately 3.6–3.8% at current prices.

With the record date for the FY26 interim dividend set for June 17, 2025, and a healthy balance sheet in place, the market is pricing in a generous payout.

Promoter Holding (Vedanta): 63.42%

Retail Shareholding: 2.48% spread across ~7 lakh shareholders

Silver Price Rally Amplifies Upside

A significant catalyst for the stock’s resurgence has been the spike in silver prices, which recently crossed Rs. 1,06,000 per kg, reaching a 52-week high. As the only listed silver pure-play on Indian exchanges, HZL offers direct leverage to silver’s upside—a compelling proposition for commodity-linked equity investors.

The silver boom, paired with a growing demand in industrial and investment use cases, is expected to continue boosting HZL’s top and bottom line.

Analyst Commentary: Divergent But Focused

Analyst views are broadly split between near-term caution and long-term optimism:

Technicals Reinforce Bullish Sentiment

From a technical standpoint, HZL is displaying broad strength:

Above all key moving averages (5, 20, 50, 100, 200-day)

Higher-than-average trading volumes

Healthy dividend yield makes it attractive to income-focused investors

These indicators confirm robust price momentum, though investors should remain vigilant against near-term reversals, particularly in response to commodity price corrections.

Sector Tailwinds and Broader Market Context

HZL’s rally is also reflective of broader strength in the metals and mining sector, which has benefited from:

A resilient macro backdrop

Rising base and precious metal prices

The recent RBI rate cut, which supports industrial demand

Its CRISIL AAA/Stable rating further underscores its financial discipline, even as it balances capex, dividends, and ESG initiatives.