Hindustan Zinc Shares Hit 52-Week High as Silver Extends Rally

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Last Updated: 23rd January 2026 - 04:06 pm

Summary:

Hindustan Zinc shares surged 6% to a 52-week high on January 23 as silver hit records, pushing market cap near ₹3 lakh crore amid geopolitical flows.

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Hindustan Zinc's stock increased by 6% on January 23, reaching a new 52-week high of ₹704.6, likely due to the high prices of silver following a diminished faith in U.S. investments. As one of the leading silver producers in Asia, Hindustan Zinc is on the verge of achieving a market cap of ₹3 lakh crore. 

Silver prices increased by 2.6%, reaching $98.71 an ounce, after briefly hitting a peak of $99.20. On the Multi Commodity Exchange, February Silver hit ₹3,36,147.00 per kg, registering an increase of 2.7% after reaching a high of ₹3,39,927.00 / kg.

Demand for silver is surging, driven by uncertainty related to global politics and economic issues.

Silver Rally Drives Share Gains

As of 11:05, Hindustan Zinc was trading 5.4% higher than the previous day. Approximately 44% of Hindustan Zinc's quarterly EBITDA comes from their sales of silver.

The largest shareholder in Hindustan Zinc is Vedanta, which holds a 62% interest, while the other main participant in Hindustan Zinc is the Indian government, with a 28% interest. The majority owner of the company is Anil Agarwal, who purchased a large stake from the government for approximately ₹500 crore.

Most recently, the government sold a 1.6% share in Hindustan Zinc for ₹3,450 crore, while Vedanta offloaded its own 1.6% stake for over ₹3,000 crore.

Strong Q3 Performance Boosts Sentiment

Q3 FY26 EBITDA was up 36% sequentially and 35% YoY, which was above consensus estimates by 8%. The cost of producing zinc fell to $940 per tonne, the lowest it has been in five years. Margins expanded to 310 bps to 55.1%, and profit after tax increased 46% YoY.
The strength of the silver price drives earnings.

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