Jefferies Sees Big Gains for Hindustan Zinc on Metal Price Uptrend

Hindustan Zinc's shares jumped over 5% on Wednesday after Jefferies raised its target price, citing favorable earnings implications from rising metal prices. The stock opened at ₹605 and reached an intraday high of ₹623.75 on the National Stock Exchange (NSE), outperforming the Nifty 50's decline.

Jefferies has raised Hindustan Zinc's FY27-29E EPS by 10-11% factoring in higher zinc & silver prices, which it expects to remain supported by supply constraints. The brokerage also sees further upside for zinc and silver prices due to persistent inflation and stable nominal interest rates.

Jeffreys has retained its 'Buy' rating on Hindustan Zinc with a target price of ₹750, implying an upside of 26% from the previous close of ₹592.60. The brokerage prefers Hindustan Zinc over Hindalco Industries, citing stronger earnings tailwinds from zinc and silver prices.