Brokerages Remain Positive on Hindustan Zinc after Strong Q1 FY27; Target Prices Reach ₹770
Nine brokerages have maintained or upgraded positive recommendations on Hindustan Zinc following its Q1 FY27 results, highlighting strong earnings growth, record-low zinc production costs, supportive zinc and silver prices, and a visible expansion pipeline. Their target prices range from ₹659 to ₹770.
Following the strong quarterly announcement, key brokerages issued positive assessments on Hindustan Zinc’s earnings outlook and structural cost positioning. HSBC maintained its Buy rating with a target price of ₹770, citing strong zinc and sulfuric acid realisations that drove the quarterly earnings beat. IIFL reaffirmed a Buy rating with a target price of ₹722, noting that higher by-product credits, ongoing expansion projects, and a robust balance sheet provide strong long-term visibility. Jefferies retained its Buy recommendation with a target price of ₹660, highlighting global supply disruptions supporting firm zinc prices. Meanwhile, Nuvama maintained its Buy call with a target price of ₹700, emphasizing disciplined cost management, favourable commodity tailwinds, and strong balance sheet fundamentals.
360 ONE retained its BUY rating with the highest target price of ₹725, implying 36.3% upside from the ₹532 reference price used in its report. The brokerage said the global zinc market had moved into deficit, while the recent correction in Hindustan Zinc’s share price had made valuations more attractive.
Antique upgraded Hindustan Zinc to BUY with a revised target price of ₹659. It highlighted a firm zinc-price outlook, attractive valuations following the recent correction and the company’s strong operational cash flows. Systematix maintained BUY with a target price of ₹669, while YES Securities upgraded the stock to BUY with a target of ₹660. JM Financial also retained BUY with a target price of ₹660.
A common theme across the reports was Hindustan Zinc’s Q1 FY27 performance. EBITDA increased by about 109% year-on-year to ₹8,074 crore, while profit after tax rose by about 145% to nearly ₹5,470 crore. Zinc cost of production, excluding royalty, declined to a record USD 851 per tonne, supported by better mined grades, improved by-product realisations, increased renewable-energy usage and operational efficiencies. Several brokerages also noted that silver contributed around 46% of quarterly profitability.
Growth capex guidance remains USD 500–600 million. The phosphoric acid and hot acid leaching projects are expected to be commissioned during Q2 FY27, while the Debari integrated zinc smelter and the Rampura Agucha tailings-reprocessing facility form part of the longer-term growth programme.
Overall, the favourable brokerage reports point to Hindustan Zinc’s cost leadership, supportive commodity prices, net-cash position and planned capacity additions as the principal drivers of the positive outlook.