Vedanta Group's Hindustan Zinc Sees Target Price Rise Amid Zinc and Silver Rally

The Vedanta Group's Hindustan Zinc stock has seen an 11% rally in the last month, bringing it closer to erasing earlier losses. This Indian zinc miner outperformed its counterpart, Hindalco, for much of the year due to a surplus in China and soaring aluminium prices.

However, the trend may be reversing, with spot zinc prices now 15% above their June average, while aluminium is 10% below. Jefferies has raised the target price on both companies, rating Hindalco as 'hold' and Hindustan Zinc as 'buy'.

Hindustan Zinc also benefits from being India's only listed silver play, with recent silver prices jumping 23% from their July lows.