Should I buy Hindustan Zinc stock in 2025? Complete Indian Market Analysis

What is Hindustan Zinc?

How much is Hindustan Zinc stock?

The price of Hindustan Zinc stock is rising this week. As of now, the share trades at ₹449.25, showing a 1.33% gain in the last 24 hours and up by 5.2% over the past week. The company holds a strong market capitalization of ₹186,886 crores, with an average daily volume of 3.99 million shares over the past three months.

With its high dividend and moderate volatility, the stock may appeal to investors seeking balanced growth and income in the Indian metals sector.

Our full analysis on Hindustan Zinc stock

Having closely examined Hindustan Zinc’s latest financial results and reviewed the company’s stock trajectory over the past three years, we conducted an integrated analysis leveraging financial indicators, technical signals, sectoral data, and competitive positioning using our proprietary models. This holistic approach uncovers several key factors currently shaping the stock’s outlook. So, why might Hindustan Zinc once again become a strategic entry point into India’s fast-evolving metals and mining sector in 2025?

Recent Performance and Market Context

Hindustan Zinc’s share price currently stands at ₹449.25 (as of 19 May 2025), translating to a market capitalization of ₹186,886 crores (~$22.1 billion). The past twelve months have featured pronounced volatility, with the stock trading within a wide 52-week range of ₹378.15 – ₹807.70. Notably, after a soft patch—reflected in a 27.7% drop year-on-year and a 12.3% retreat from the 6-month high—the recent price action signals a return of momentum: up 5.2% for the week and surging 1.33% intraday, a strong sign of renewed market interest.

Several positive events underpin this optimism. The company’s most recent quarterly results substantially exceeded consensus estimates, with net profits up 47.4% year-on-year and revenues climbing 20.37% YoY. At the macro level, India’s ongoing infrastructure build-out, robust manufacturing sector, and government’s continued push for resource security are lending steady support to the metals and mining industry, offsetting global commodity headwinds. As a core pillar of the non-ferrous space, Hindustan Zinc enjoys both the scale and structural resilience to capitalize on these favorable undercurrents.

Technical Analysis

The technical landscape for Hindustan Zinc is compelling for bullish participants. The stock’s price has decisively moved above its 20-day, 50-day, and 100-day SMAs (Simple Moving Averages)—indicative of emerging positive momentum—while remaining just below its longer-term 200-day SMA at ₹479.98. This technical posture suggests the stock is recovering from an extended basing period, potentially setting up for a more sustained upward move.

• RSI (14-day): 53.93, residing in neutral territory but tilting upward—pointing to the start of positive accumulation.
• MACD (12,26,9): 1.27, now in bullish territory.
• Immediate Support: Firmly established at ₹390, a level which has held multiple tests and provided a reliable floor.
• Resistance: Initial resistance is seen at ₹476; a convincing breakout here could accelerate momentum further.

Momentum indicators and price structure collectively signal that Hindustan Zinc may be in the early stages of a trend reversal. With the RSI curve rising and price action printing higher lows, entry at current levels seems well-timed, especially for investors seeking to position ahead of pivotal technical inflections.

Fundamental Analysis

• Revenue Growth: FY2025 revenue at ₹34,083 crores, up 18% YoY, with Q4 growth accelerating to 20.37% YoY.
• Profitability: Net profit reached ₹10,353 crores for FY2025—a robust 33% increase YoY; EBITDA margin stands at a stellar 51%.
• Valuation: The current P/E of 17.90 is attractive relative to both historical averages and sector peers, particularly considering the company’s exceptional profitability and dominant market share.
• Dividend Yield: A forward dividend yield of 8.57% stands out as a key attraction, offering income-oriented investors meaningful returns.
• Operational Excellence: Four consecutive quarters of cost reductions have buttressed margins even amid commodity price volatility.

Strategically, Hindustan Zinc boasts approximately 80% market share in India’s primary zinc market—a position reinforced by scale, vertical integration, and prudent CAPEX aimed at both production expansion and sustainability. Its increasing focus on high-margin silver positions it favorably for added growth and diversification, while strong execution continues to deliver positive earnings surprises.

Volume and Liquidity

Average daily trading volume stands at 3.99 million shares over the past three months—demonstrating ample liquidity to support both institutional flows and dynamic active strategies. Recent volume spikes in tandem with price rallies further indicate growing market confidence and participation—helpful underpinnings for a stock seeking to build a sustainable upward trajectory.

The relatively limited free float, given Vedanta Ltd.’s controlling 65% stake and the Government of India's significant holding, often acts as a catalyst for dynamic re-ratings during periods of buying interest, amplifying price responsiveness and supporting investor conviction that value can quickly be unlocked.

Catalysts and Positive Outlook

• Capacity Expansion: Aggressive plans to double production capability are well underway, supported by accelerated CAPEX.
• Silver Focus: Intentional evolution toward becoming India’s preeminent precious metals play—particularly via growth in silver—is likely to drive a structural rerating, especially as silver demand surges in industrial and technology end-markets.
• Sustainability Initiatives: Investments in battery-powered mining vehicles and water recycling mark significant advances in ESG adoption, a vital consideration for long-term institutional flows.
• Empowerment: The landmark achievement of 25% women in the workforce sets new benchmarks for inclusion and operational excellence in Indian manufacturing.
• Favourable Regulatory & Sectoral Climate: Ongoing infrastructure projects and encouragement for domestic resource security from the Indian government reduce external risks and may catalyse further sector inflows.
• Earnings Visibility: Street expectations point to 6.6% annualized earnings growth and 4% revenue CAGR, with profitability likely to improve as silver contribution rises and production efficiencies compound.

These factors, alongside continued operational stability—evidenced by seamless functioning during regional border tensions—suggest that both organic and inorganic growth drivers are firmly in play, reinforcing the medium- to long-term value proposition.

Investment Strategies

• Short-Term:
• Traders may view the current price, just above key support and clustering around critical moving averages, as an ideal technical entry point. The short-term upside is reinforced by momentum indicators turning positive, with a potential tactical target at the ₹476 resistance.
• Medium-Term:
• Investors can look to accumulate on dips or post-breakout consolidation, anchoring on continued earnings outperformance and execution on CAPEX-driven production ramp-up expected over the next 12-24 months.
• Long-Term:
• The strategic shift toward silver, sustainability-led CAPEX, and dominant local market share drive a strong long-term case. Hindustan Zinc is also uniquely positioned for passive inflows with its substantial dividend yield and inclusion in major Indian indices; patient investors could benefit from both capital appreciation and high recurring income over the cycle.

For all timeframes, positioning at current levels or slightly on retracements offers a compelling risk-adjusted balance, particularly as the stock appears to be emerging from a capitulation bottom—the classic setup for new bull phases ahead of earning and sector catalysts.

Is it the Right Time to Buy Hindustan Zinc?

• Sustained revenue and earnings momentum outstripping both domestic and global peers.
• A structurally high dividend yield providing steady cash flows in any market environment.
• Visible and well-funded growth catalysts—from capacity expansion and product diversification to innovative ESG initiatives.
• A technical chart pattern signaling the end of a prolonged correction and the potential onset of a new upward trend.
• Market liquidity deep enough to attract diverse investor classes, with volume flashing early confirmation of renewed investor interest.

Taken together, these strengths position Hindustan Zinc as a standout within the Indian non-ferrous metals sector, with the fundamentals and technical foundation to justify serious consideration by investors. The stock’s recent stabilization and mounting momentum suggest it may indeed be entering a renewed bullish phase—one amply supported by both financial rigor and sectoral tailwinds. For those seeking resilient growth, strong cash generation, and the upside potential from India’s industrial transformation, Hindustan Zinc seems to represent an excellent opportunity at current levels.

With the next wave of sector catalysts on the horizon and its fundamentals firmly in place, Hindustan Zinc is poised to reward investors who position themselves at this pivotal juncture.

How to buy Hindustan Zinc stock in IN?

Buying Hindustan Zinc stock online is a straightforward and secure process when you use a regulated Indian broker. You can choose between two main methods: buying shares directly (cash/spot buying), where you own the actual equity, or trading contracts for difference (CFDs), which allow you to speculate on price movements with leverage. Both approaches can be initiated in minutes through leading online trading platforms. Below, you'll find a detailed comparison to help you identify which method—and which broker—best suits your needs.

Spot Buying

Spot buying means purchasing real shares of Hindustan Zinc on the National Stock Exchange (NSE) via a broker. When you buy in cash, you become a part-owner and can benefit from dividends (the company currently offers a high yield of 8.57%). Fees for cash buying usually include a brokerage commission—typically ₹20 to ₹30 per order—and minimal transaction or demat charges.

Example

If Hindustan Zinc trades at ₹449.25 per share, a ₹1,000 investment (after accounting for a ₹400–₹600 equivalent, or roughly $5, fee) lets you buy about 2 shares (1,000 / 449.25 ≈ 2.2; rounded to 2 after fees).
✔️ Gain scenario:
If the share price rises by 10%, your 2 shares are now worth ₹989 (2 × ₹494.18), up from ₹898.50 (excluding fees for clarity).
Result: +₹90.70 gross gain, which reflects a +10% increase on your initial investment.

Trading via CFD

CFD (Contract for Difference) trading lets you speculate on the price of Hindustan Zinc without owning the actual shares. Instead, you enter a contract with the broker to exchange the price difference of the stock from open to close. This method typically involves two types of fees: the spread (the difference between buy/sell prices) and overnight financing charges if you hold your position for more than one day.

Example

Suppose you deposit ₹1,000 and use 5x leverage (market exposure of ₹5,000).
✔️ Gain scenario:
If Hindustan Zinc stock rises by 8%, your exposure translates into a 40% profit thanks to leverage (8% × 5). This means +₹400 gain on a ₹1,000 deposit (excluding fees), allowing for greater potential returns—but keep in mind, losses can also be magnified.

Final Advice

Before investing, it's essential to compare brokers’ commission structures, minimum deposit amounts, platform usability, and support for both cash buying and CFDs. Your choice should align with your investment style—whether you prefer straightforward ownership (and dividends) or seek leveraged opportunities via CFDs. Refer to the broker comparison further down this page to find the right fit for your financial goals and approach. Investing in Hindustan Zinc can be an accessible and rewarding venture with the right preparation and broker selection.

Our 7 tips for buying Hindustan Zinc stock

The latest news about Hindustan Zinc

Hindustan Zinc delivered an outstanding Q4 FY2025 performance, significantly beating consensus estimates on all fronts. For the quarter ended March 31, 2025, the company reported revenue of ₹9,087 crores, representing a robust 20.37% year-on-year increase, while net profit surged 47.4% to ₹3,003 crores. An EPS of ₹7.05 and EBITDA of ₹4,816 crores further underscored operational strength with margins holding firm. The company’s full-year results were equally impressive, showing an 18% rise in revenue to ₹34,083 crores and a notable 33% improvement in profit after tax to ₹10,353 crores. These results exceeded market expectations, reinforcing analysts’ positive outlook for the stock, particularly after a period of underperformance.

The stock has exhibited a positive technical breakout, trading above key short-term moving averages and suggesting a trend reversal. Over the last week, Hindustan Zinc’s share price rose by 5.2% and is trading at ₹449.25, placing it above its 20-, 50-, and 100-day simple moving averages (SMAs)—a bullish signal. The MACD has turned positive while the RSI is climbing towards the upper neutral zone. These developments, coupled with daily trading volumes remaining healthy near the 4-million mark, indicate renewed buying interest and improved sentiment among domestic investors. This technical stabilization is noteworthy, given recent weakness and could attract both retail and institutional participation.

Recent sustainability initiatives and industry recognition have strengthened the company’s ESG profile and local market reputation. In the past week, Hindustan Zinc inaugurated a major water treatment facility at its Rampura Agucha Mine and achieved an industry-first milestone with women now forming 25% of its workforce. The adoption of battery-operated vehicles in mining operations, supported by a capital investment exceeding ₹8,200 crores, also highlights its focus on cost reduction and environmental stewardship. These actions not only signal operational improvements but also support regulatory compliance in India and enhance corporate image, potentially influencing longer-term institutional investor confidence.

Strategic production expansion and a targeted shift towards precious metals offer promising growth prospects for Indian stakeholders. The company has announced it will double its production capacity in the coming years and is actively pursuing increased output of silver, aiming to reposition itself as a ‘precious metal company’. This diversification aligns well with the global uptrend in silver demand and could reduce reliance on base metal price cycles, benefiting the Indian market given the country’s rising appetite for silver and non-ferrous metals. Analysts forecast annual earnings and revenue growth of 6.6% and 4%, respectively, indicating sustained expansion potential driven by these domestic-focused strategies.

Hindustan Zinc continues to reward Indian shareholders with a market-leading forward dividend yield, reinforcing its appeal for income-focused investors. Currently, the stock offers an 8.57% forward dividend yield, among the highest in India’s large-cap segment. This reliable dividend policy, combined with its strong operating performance and healthy cash flows, remains particularly attractive for those seeking stable income in the metals and mining sector. The stock’s eligibility across standard Indian investment channels and its disciplined approach to capital allocation further enhance its status as a core holding for Indian portfolios, especially in an environment of market volatility.

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P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.