Hindustan Zinc’s exposure to silver is underpriced, calls for re-rating, says Emkay Global
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Shares of Hindustan Zinc (HZ) could likely benefit from Silver’s remarkable rally and is emerging as one of the biggest beneficiaries as prices of the precious metal continue to surge, up 63% so far this year to $47 per ounce — sharply higher than $34/oz in Q1FY26 and $30/oz in FY25, Emkay Global said in a note dated September 29. Analysts believe the market is yet to fully price in the company’s exposure to silver, even as global peers such as Fresnillo and Grupo Mexico have already re-rated in 2025. With consensus expectations still trailing the rally, they see significant room for Hindustan Zinc’s valuation to catch up — a rating that would directly benefit parent Vedanta Ltd (VEDL), where the company accounts for 40% of consolidated EBITDA. Also read: Nifty gets fresh look with 2 new stocks; Hero MotoCorp, IndusInd Bank drop out“Interestingly, silver is a by-product of zinc, which implies that 88% of silver revenue is a direct pass-th...