Hindustan Zinc shares are poised to be in focus during Wednesday's trading session following silver's remarkable surge to fresh record highs. The precious metal jumped 3% to $89.60 per troy ounce, extending its impressive rally that has seen gains of 26% in 2026.

Company's Silver Exposure Drives Market Interest

Hindustan Zinc's position as one of the world's top five silver producers makes it a key beneficiary of the current price rally. The company maintains an annual silver production capacity of approximately 800 tonnes, with the white metal serving as a significant earnings contributor.

Market Drivers Supporting Silver Rally

The recent surge in silver prices has been fueled by safe-haven demand amid escalating geopolitical tensions. Key factors include rising tensions between the US and Iran, along with reports regarding Federal Reserve Chair Jerome Powell facing potential criminal indictment threats from the Trump administration over Congressional testimony.

Technical Analysis Points to Continued Strength

Sachin Gupta, VP-Research at Choice Equity Broking, highlighted the stock's robust technical position. Hindustan Zinc has delivered strong performance over the past month, gaining more than 10%. The stock maintains bullish momentum, trading above all key moving averages and critical support levels.

Momentum indicators, including the RSI, remain in positive territory, reinforcing bullish sentiment. Analysts recommend adopting a buy-on-dips strategy, with any decline toward the ₹610-₹605 zone presenting attractive entry opportunities.

Brokerage Outlook and Growth Projections

International brokerage firm Jefferies recently initiated coverage with a Buy rating and target price of ₹660 per share, representing approximately 5% upside from current market levels. The firm identifies Hindustan Zinc as a key beneficiary of rising silver and zinc prices, supported by first-decile zinc mining costs.

Operational Efficiency Improvements

The company has demonstrated significant improvements in cost efficiency metrics. Reported zinc cost of production (excluding royalty) declined substantially from a peak of $1,257 in FY23 to $1,002 in 1HFY26. This reduction stems from better ore grades, increased domestic coal usage, softer global coal prices, and rising renewable energy contribution.

Looking ahead, the company expects costs to remain largely range-bound through FY26-28E, as efficiency gains and increased renewable power usage are projected to offset pressures from deeper mining operations and ore grade variability. Strong cash generation capabilities and healthy return on equity metrics support the positive outlook, with FY26-28 EPS estimates running 9-31% higher than Street expectations.

Veteran investor Mukul Agrawal has made a significant investment in Hindustan Construction Company (HCC), acquiring a 1.68% stake through the purchase of 4.40 crore shares. The investment, valued at ₹86.00 crore according to Trendlyne data, has already shown positive market response with the stock rallying nearly 10% over the past two trading sessions.

Investment Details and Market Performance

The market veteran and founder of Param Capital Group, with over two decades of capital market experience, made this strategic entry after a sharp correction in the stock. HCC shares have experienced significant volatility, falling over 30% in the past year despite delivering impressive long-term returns.

Agrawal's Portfolio Performance

Despite pressure on smallcap stocks for most of 2025, Agrawal's ₹6,500.00-crore portfolio has demonstrated resilience with five multibagger performers during the year. These standout investments include Oseal Devices, Zelio E-Mobility, Monolithisch India, Zota Health Care, and ASM Technologies, showcasing his ability to identify value opportunities across market cycles.

Recent Corporate Developments

HCC has undertaken several significant corporate actions recently that may have influenced Agrawal's investment decision. The company successfully completed a rights issue that was oversubscribed by 200%, with applications totaling approximately ₹2,008.00 crore against an issue size of ₹1,000.00 crore.

Vice Chairman and Managing Director Arjun Dhawan commented that the strong response would help strengthen HCC's balance sheet, aid ongoing deleveraging efforts, and support the company's long-term growth strategy.

Major Contract Win

In a separate development, HCC secured a substantial infrastructure contract worth ₹901.00 crore from the Northeast Frontier Railway (NFR). The comprehensive project involves construction of a 3.5-kilometer main tunnel and includes end-to-end design, engineering, and commissioning services. The scope encompasses design and proof-checking of broad-gauge ballast-less track, along with supply, installation, testing, and commissioning of all associated railway systems and structures.

Current Trading Activity

Shares of Hindustan Construction Company were trading at ₹19.40, representing a 4% increase from the previous close of ₹18.71 on the BSE. The company operates across multiple infrastructure segments including transportation, power, and water, having executed several large infrastructure projects across India.