Hindustan Zinc Limited fell 3% year-to-date as of August 25, lagging the Nifty Metal rally, as analysts attributed pressure to a sharp fall in silver prices from $92.1/oz in January to $57.6/oz in July, persistent Chinese zinc production surplus expected into 2027 capping zinc prices, and its Vedanta-group linkage driving sentiment around dividend upstreaming, though Ventura Securities noted its low-cost position and silver by-product provide a resilient floor pending silver stabilisation and resolution of government stake-sale overhang.

Hindustan Zinc Limited shares rose 5.1% to Rs 623 on Aug 26 after DIPAM Secretary Arunish Chawla told CNBC-TV18 the government is not looking at a stake sale in Hindustan Zinc at the moment, easing fears of an imminent OFS. Jefferies also maintained its 'Buy' on Hindustan Zinc Limited and raised its target to Rs 750, implying about 27% upside, citing zinc prices 15% above the June-quarter average and silver up 23% from July lows, and lifted FY27-FY29 EPS estimates by 10-11%.

Jefferies retained a Buy rating on Hindustan Zinc Limited and raised its target price to Rs750 from Rs660, implying about 26% upside from Rs592.60, and lifted FY27-29E EPS by 10-11% to 16-23% above consensus on higher zinc and silver prices, with a further 12% potential FY28 EPS upside at spot prices.

Hindustan Zinc shares fell to an intraday low of Rs 586.85, down 2.84% from Rs 604, on revived expectations that the government may sell around 1.5% stake via an offer for sale, potentially raising Rs 3,500-4,000 crore at current prices, according to Moneycontrol citing sources. The expectation was revived by the government's offer for sale in Hindustan Copper. Hindustan Zinc also reported Q1 FY27 consolidated net profit of Rs 5,469 crore, up 145% from Rs 2,234 crore a year earlier, with revenue up 77% to Rs 13,747 crore.

Hindustan Zinc Limited fell nearly 3% on August 25, trading around Rs 588, down 2.65%, on expectations the government may sell around 1.5% stake via an Offer for Sale that could fetch Rs 3,500-4,000 crore at current prices. The government holds 27.92% in Hindustan Zinc Limited while Vedanta holds 60.71%, and merchant bankers have been appointed though timing, size and pricing are not announced. The buzz followed the government's Offer for Sale in Hindustan Copper.

Hindustan Zinc shares rose as much as 4% to Rs 595.30 on Friday, taking the two-day gain to 7%, as MCX silver prices advanced for a third straight session. The Vedanta-owned Hindustan Zinc ranks among leading global silver producers with annual output of 22.5 million ounces and operates in the lowest quartile of the global zinc cost curve with about 25 years of mine life. Hindustan Zinc also reported Q1 FY27 net profit of Rs 5,469 crore, up 145% YoY, and revenue of Rs 13,747 crore, up 77% YoY.