Hindustan Zinc Q3 Beats Estimates; Silver Boosts Outlook, Valuations Debated

• Hindustan Zinc reported strong Q3 results, exceeding revenue and profit estimates, driven by higher LME prices and reduced production costs.
• The company achieved a net cash positive position, with Q4 expected to be even stronger due to spiking commodity prices, especially silver.
• HSBC and Jefferies maintained 'Buy' ratings, raising price targets to ₹750, citing strong silver prices and solid Q3 performance.
• Citi and Nuvama issued 'Sell' and 'Reduce' ratings respectively, flagging high valuations and modest volume growth targets despite strong silver contributions.
• Silver EBIT surged 56% quarter-on-quarter, accounting for 44% of total EBIT in Q3, highlighting its growing importance to the company's earnings.

Why It Matters: Hindustan Zinc's strong Q3, fueled by silver, excites bulls, but high valuations concern bears.