Jefferies: Buy Hindustan Zinc, 18% Upside on Silver Play

• Jefferies initiated a "Buy" rating on Hindustan Zinc with a target price of ₹660, suggesting an 18% upside.
• The brokerage forecasts EPS growth of 22% in FY26 and 29% in FY27, exceeding street expectations.
• Jefferies justifies the valuation premium due to the increasing contribution of Silver to Hindustan Zinc's pre-tax earnings.
• Hindustan Zinc is India's sole listed pure Silver play, with Silver accounting for 40% of its EBIT.
• The company plans to expand Silver capacity by 4% to 830 tonnes per annum and refined metal capacity by 34% to 1.5 MTPA by Q2 FY29.

Why It Matters: It signals a potential investment opportunity in Hindustan Zinc.