Share price of India's largest silver producer Hindustan Zinc Ltd. shot up to a seven-month high on Monday, after silver prices skyrocketed to over Rs 1.05 lakh per kilogramme.
Hindustan Zinc is an interesting beneficiary of the development, as it derives both silver and zinc from the same mine, essentially getting to switch as per market demand and pricing. The metal had hit a lifetime high on Friday, advancing to $36.34 per ounce. The commodity's spot prices, according to the India Bullion Association, had been trading beyond the Rs 1-lakh mark since last week.
The Chief Executive Officer of Hindustan Zinc, Arun Misra, highlighted that the company expects the silver shortage to increase further. To capitalise on the rising silver prices, the company is also considering redesigning its production process to enhance efficiency and output.
Hindustan Zinc is also set to approve an interim dividend on June 11, for which the record date is expected to be June 17 post receiving shareholder approval.
Hindustan Zinc Share Price Today
The scrip rose as much as 3.24% to Rs 518.50 apiece, the highest level since Nov. 6, 2024. It pared gains to trade 3.21% higher at Rs 518.45 apiece, as of 10:20 a.m. This compares to a 0.43% advance in the NSE Nifty 50 Index.
It has risen 16.93% on a year-to-date basis, but has slipped 24.58% in the last 12 months. The relative strength index was at 76.30.
Out of 16 analysts tracking the company, six maintain a 'buy' rating, three recommend a 'hold,' and seven suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an downside of 12.6%.
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