Now Reading: Jefferies raises Hindustan Zinc target to Rs 750
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Jefferies raises Hindustan Zinc target to Rs 750
Hindustan Zinc's stock surged nearly 6% on Wednesday after Jefferies India raised its target price to Rs 750, implying a 31% total shareholder return. The upgrade was driven by a better outlook for zinc and silver, with spot zinc prices at four-year highs and silver recovering 23% from July lows. Reports also eased speculation of a government stake sale.
But the rally faces medium-term risks. Woodmac projects the refined zinc market will move from deficit to surplus in 2027 and 2028. Silver consensus price targets have been revised down. Hindustan Zinc trades at 9.2 times EV/Ebitda, a premium that leaves it exposed if commodity prices normalise.
Indian Opinion Analysis
Ndtvprofit.com's version leads with Jefferies' target price upgrade and the 31% return outlook, framing the story as an investment opportunity. Livemint.com leads instead with the stock's rally and the sustainability question, foregrounding risk. Livemint.com alone mentions the easing of stake sale speculation, a government-related factor that ndtvprofit.com omits entirely. The pro-investor framing on ndtvprofit.com glosses over medium-term commodity surplus risks, while livemint.com devotes space to Woodmac's bearish surplus projections and the stock's premium valuation. The combined reading is that near-term tailwinds are real, but both sources agree the medium-term outlook hinges on zinc and silver prices holding above current levels. Watch Hindustan Zinc's Q2FY27 results and LME zinc price movements.
Coverage: 2 sources, 2 neutral
Sources (2): ndtvprofit.com (neutral report), livemint.com (neutral report)
This brief was synthesised by AI from the 2 sources linked above, so one read covers every framing they carry. Methodology and corrections.
Updated: this story now draws on 2 sources.
