Hindustan Zinc, a leading player in the Zinc-Lead and Silver business, has seen a phenomenal growth in its stock price, reaching a 52-week high on Friday. The company’s shares opened higher at Rs. 584.75 and surged to Rs. 619.10 during the trading session, marking a 4 percent increase. The stock closed at Rs. 588, reflecting a multibagger return of 101 percent in just 50 days.
This remarkable growth can be attributed to the company’s strong financial performance and record production figures. Hindustan Zinc reported a 3 percent increase in revenue to Rs. 7,285 crores and a 1 percent rise in net profits to Rs. 2,038 crores in the March quarter. The company also generated a cash flow of Rs. 2,099 crores, with substantial investments in high-quality debt instruments.
Furthermore, Hindustan Zinc achieved its highest-ever quarterly refined metal production and recorded significant growth in silver production. The company’s lead demand has also been robust, driven by increasing automotive sales. Additionally, the global upturn in the commodities cycle has supported the rally in Hindustan Zinc’s shares.
Looking ahead, Hindustan Zinc has proposed a revised demerger plan to streamline its operations and enhance efficiency. The company is seeking government approval for this plan, which is crucial for its successful implementation. In FY25, Hindustan Zinc expects to surpass its production figures from the previous year, with projected increases in mined metal, refined metal, and saleable silver production.
Overall, Hindustan Zinc’s impressive performance and growth trajectory have positioned it as a key player in the market, attracting investors’ attention and driving its stock price to new heights.
