1:5 Split, 1:1 Bonus, 39 Dividends All-Time; Hindustan Zinc Share Surges 5% Last Week; Buy This Vedanta Stock?

Hindustan Zinc share price recovered sharply last week despite momentum in silver prices being bearish. HZL shares gained over 5% from February 2nd to 6th trading session, and is currently holding above Rs 600 mark. HZL has reported a strong Q3FY26 driven by production surge and strong rally in silver in the last three months of 2025. But with silver prices cooled off significantly from their peak, should you buy Hindustan Zinc shares?

Hindustan Zinc Share Price:

After market hours of February 6th, HZL shares stood at Rs 608.95 apiece on BSE, marginally down with a market cap of Rs 2,57,300.80 crore. Despite this, HZL shares closed the trading week with an upside of 5.24% on the exchange.

In the past six months, HZL shares gained by 44.76% on BSE.

According to MarketsMojo, HZL's share price remains above its 50-day, 100-day, and 200-day moving averages, indicating a longer-term bullish trend. However, it is currently trading below its 5-day and 20-day moving averages, signalling short-term weakness and potential consolidation.

It added, such mixed technical signals highlight a stock at a critical juncture, where near-term correction may be balanced by underlying structural strength in the company's fundamentals and sectoral positioning.

Should You Buy Hindustan Zinc Share Price?

MarketsMojo has downgraded its stance to HOLD from BUY on Hindustan Zinc. This signals a cautious stance, likely influenced by the recent price correction and sectoral headwinds. The Hold rating suggests that while the stock remains fundamentally sound, investors should await clearer signs of trend stabilisation before committing fresh capital.

Similarly, analysts at Geojit in their note said, "Domestic zinc demand is supported by steady growth in steel production, which is projected to reach 300mn tonne per annum by 2030. India's economic outlook remains strong, with the manufacturing Purchasing Managers' Index consistently indicating growth, driven by positive consumer sentiment and sustained robust demand."

Analysts added that while zinc and lead prices remain stable, silver's earlier bullish momentum has eased. With prices cooling off from recent highs and volatility rising, the near term outlook for silver has turned uncertain amid ongoing geopolitical risks.

Notably, the company's expansion plans for the Rajpura Dariba and Zawar mines are expected to add volume and potentially increase silver production. Hence, analysts at Geojit added "we upgrade our rating on the stock to HOLD, based on 10.4x FY28E EV/EBITDA, with a rolled-forward target price of Rs. 688." From current market price, there is a potential of nearly 13% upside ahead in HZL.

Backed by Vedanta, Hindustan Zinc Ltd (HZL) is into the exploration, mining and smelting of zinc, lead and other non-ferrous metals. Its products include zinc ore, lead zinc concentrate, zinc metal, lead metal, cadmium metal, silver metal and sulphuric acid.

Hindustan Zinc Corporate Actions:

HZL has a history of steady dividend payouts, while the company has delivered one bonus and split.

Dividends: Since August 2003, the company paid about 39 dividends, as per Trendlyne data. In the last 12 months, the company distributed up to Rs 10 dividend per share. It has a dividend yield of 1.9%.

Bonus Issue: The metal company has delivered only one bonus issue. In March 2011, HZL has paid 1:1 bonus shares. This meant 1 free share against 1 existing share.

Stock Split: Meanwhile, HZL has split only once. In March 2011, the company subdivided its shares in the ratio of 1:5, where the face value has split from Rs 10 each to Rs 2 each.

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