Hindustan Zinc shares jump 4% after Q2 net profit more than doubles. Why Jefferies cut target price?
The company on Monday reported a consolidated net profit of Rs 6,412 crore for the second quarter of the ongoing financial year 2027, marking a sharp 142% year-on-year increase from the Rs 2,649 crore reported in the corresponding quarter of the previous financial year. The shares of the company surged to Rs 560 apiece on NSE on Wednesday morning.
The metal major’s revenue from operations jumped more than 76.5% YoY to Rs 15,093 crore during the July-September quarter of FY27, from Rs 8,549 crore reported in the year-ago period. This was driven by higher metal prices, increased metal production, higher by-product realisation, and a stronger dollar. Total expenses grew nearly 31.5% YoY to Rs 6,895 crore during the quarter under review.
Hindustan Zinc’s EBITDA more than doubled, surging around 108% YoY to Rs 9,285 crore, while the EBITDA margin improved to 62% from 52% in the year-ago period. This came as the company’s net silver sales surged 141% YoY to Rs 4,111 crore while zinc sales jumped 54% YoY to Rs 8,224 crore. Lead and other metal sales jumped 35% and 151% YoY, respectively.
Also read | Hindustan Zinc Q2 Results: Net profit skyrockets 142% YoY to Rs 6,412 crore, revenue soars 77%
Why Jefferies reduced target price for Hindustan Zinc shares?
Jefferies reduced its target price for Hindustan Zinc shares to Rs 650 apiece from Rs 750 apiece, with the latest target price implying around 21% upside potential from the stock’s previous closing price of Rs 538.4 apiece on NSE.
The international brokerage continues to prefer JSW Steel and Welspun Corp in the metals sectors. It however noted that Hindustan Zinc’s September quarter EBITDA was 8% above its estimate, driven by lead concentrate sales and lower cost of production.However, silver prices have been volatile since June 2026 and rising rates may continue to pose near-term pressure, Jefferies warned. “Our global analysts remain constructive on silver over medium term, as mounting fiscal pressures and inflation risks support precious metals. We factor in silver prices of $50 in balance-FY27, FY28 and FY29 (13% below spot of $58). Lead price has moderated 6% in 2026 so far; we assume lead prices of $1,850-1,875 in balance-FY27, FY28 and FY29 (in line with spot at $1,850),” it added.
Jefferies raised FY27 EPS estimate by 5% but reduced its FY28-29 forecast by 4% on lower silver prices. It believes silver price recovery will be key to stock performance.
Hindustan Zinc share price
Hindustan Zinc shares have fallen more than 9% in one month and 12% in 2026 so far. The stock is overall 11% up in one year.
In the longer term, the shares of the company have jumped over 74% in three years and 57% in five years. The company has a market capitalisation of more than Rs 26,136 crore.
Also read | Mukul Agrawal portfolio: Ace investor adds 7 new equity stocks in Q2. Do you own any?
Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.
