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News Topical, Digital Desk : Shares of Hindustan Zinc Limited, a Vedanta Group unit, once again crossed the ₹500 mark on Monday, December 1st. The stock touched ₹501.15 intraday, the first time since October. This marks the fourth consecutive day of gains for the stock. Volume also appears strong, with over 4 million shares traded in the first 30 minutes of the trading session.
Shares keeping pace with silver:
Silver prices have reached record highs in the international market. Silver recently surpassed $58 per ounce for the first time, and Hindustan Zinc shares are also following suit. Hindustan Zinc is considered the country's only listed silver-focused company, as 40%-45% of its EBIT comes from silver. Therefore, any movement in silver has a direct impact on the company's valuation.
Why is silver shining?
- Expectations of a rate cut from the Federal Reserve
- Industrial demand picks up
- Global inventory reduction
- These factors have taken silver prices to new heights.
Hindustan Zinc's Strategy
In the earnings call, the company management stated, "The ongoing silver rally is giving us significant upside, especially as we are working on capex to increase silver production from 700 tonnes to 1,500 tonnes as part of our long-term planning. We are well-positioned to benefit from this cycle."
Shareholding Pattern
Vedanta holds approximately two-thirds of Hindustan Zinc, while the government also holds a significant stake. Consequently, the stock's free float in the market is very limited, which sharply impacts prices.
Stock Performance
Hindustan Zinc shares are trading at ₹496.1, up approximately 2.3% in Monday's trade. The stock has gained 12% so far in calendar year 2025.
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