Hindustan Zinc Shines in Q3, Brokerages Predict ₹750 Target Amid Silver Surge

• Hindustan Zinc reported strong Q3 FY25 results with earnings of ₹10,922 crore and net profit of ₹3,879 crore, exceeding estimates.
• Improved performance was driven by higher LME commodity prices, reduced production costs, and the company becoming net cash positive.
• HSBC and Jefferies maintained 'Buy' ratings, raising targets to ₹750, citing strong silver prices and controlled costs.
• Silver's increasing share in total EBIT justifies a premium valuation, with Jefferies expecting 47% annual EPS growth in FY27.
• Citi and Nuvama maintained 'Sell' and 'Reduce' ratings respectively, citing expensive valuations and modest volume growth targets.

Why It Matters: Hindustan Zinc's strong Q3, fueled by silver prices, leads to optimistic brokerage targets despite valuation concerns.