Jefferies projects Hindustan Zinc’s earnings per share (EPS) to grow by 22% in FY26 and 29% in FY27, followed by a further 7% increase in FY28. The brokerage added that its EPS forecasts are between 9% and 31% higher than prevailing Street estimates.
Jefferies has initiated coverage on Hindustan Zinc Ltd, a subsidiary of Vedanta, with a ‘Buy’ rating on Monday, December 15, setting a price target of ₹660 per share. This target implies a potential upside of about 18% from the stock’s closing level on Friday.
In its initiation note, Jefferies expects earnings per share (EPS) to grow by 22% in FY26 and 29% in FY27, followed by an additional 7% increase in FY28. The brokerage added that its EPS projections are 9% to 31% higher than Street estimates.
At current levels, Hindustan Zinc trades at an FY27E EV/EBITDA multiple of 9.2x, above its 10-year average of 7.3x. Jefferies believes this valuation premium is warranted, citing the rising contribution of silver to pre-tax earnings.
Global silver prices have surged more than 120% in 2025, recently approaching the $65 per ounce mark. Hindustan Zinc stands out as India’s only listed pure-play silver company, with silver accounting for around 40% of total EBIT. By Q2 FY29, the company plans to increase silver capacity by 4% to 830 tonnes per annum, while expanding refined metal capacity by 34% to 1.5 million tonnes per annum.
Jefferies’ assumptions factor in zinc prices of $3,225–$3,250 per tonne during H2 FY26 to FY28, roughly 4% below spot levels, and silver prices in the range of $56–$60 per ounce, about 3%–10% below spot.
Over FY26–FY28, the brokerage expects free cash flow to range between ₹8,000 crore and ₹14,800 crore annually, while return on equity (RoE) is projected at a robust 69%–85% over the same period.
Currently, 18 analysts track Hindustan Zinc, with nine recommending ‘Buy’, three suggesting ‘Hold’, and six maintaining a ‘Sell’ stance.
The stock delivered its strongest weekly performance since May 2024 last week, rising 13%. Despite the recent rally, Hindustan Zinc continues to trade around 30% below its all-time high of ₹807, which it reached in May 2024.
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