1:1 Bonus, 1:5 Split, 39 Dividends: Hindustan Zinc Volatile After Q3 Update, Buy This Vedanta Lt

Hindustan Zinc, a leading zinc giant backed by Vedanta Ltd, traded volatile during the January 5th trading session on BSE after releasing its production performance for Q3 and 9M of FY26. Hindustan Zinc recorded highest ever third quarter mined metal and refined metal production. Last week, HZL shares touched back-to-back new 52-week highs and traded at its 16-month high.

Hindustan Zinc Share Price:

In the early trade, the large-cap zinc stock zoomed nearly 2% to hit an intraday high of Rs 638.95 apiece. However, in the second half of the trading session, the stock dropped by nearly 1% to trade at Rs 624.15 apiece on BSE, with market cap of Rs 2,63,723.29 crore.

Last week, HZL touched a new 52-week high of Rs 656.25 apiece.

In a year, HZL stock rallied by over 41%. In the past six-months, the stock skyrocketed by 44% on BSE.

Hindustan Zinc Q3 Update:

As per the regulatory filing, during Q3 of FY26, HZL recorded best ever third quarter mined metal production at 276 kt driven mainly by higher ore production. Further, the company posted record third quarter refined metal production at 270 kt driven by commissioning of debottlenecking projects at Chanderiya & Dariba, ramp up of 160 Ktpa roaster at Debari and better plant availability. Refined lead production lower by 11% YoY mainly on account of 'pyro operations on lead only mode' in previous period.

Also, saleable silver production at 158 metric tonnes, up 10% QoQ in line with lead production. Meanwhile, in Q3FY26, wind power generation at 50 MU, up 5% YoY in line with wind velocity.

During 9MFY26, the company posted highest ever nine months mined metal production at 799 kt, on account of higher ore production, better grades & improved recoveries. Its refined zinc production at 624 kt, up 2% YoY majorly in line with plant availability.

BUY Hindustan Zinc Stock?

The consensus recommendation from 15 analysts for Hindustan Zinc is HOLD, as per Trendlyne data. The average target price is of Rs 521.20 apiece, which signals nearly 17% potential downside ahead. However, global brokerage Jefferies is the latest to like HZL shares due to strong rally in silver rates.

On the valuation, Jefferies analysts said, "We expect HZ's EPS to rise at strong 22%/29% in FY26/FY27, and then by 7% in FY28; our FY26-28 EPS are 9-31% above street. Despite recent rally, HZ stock has lagged most of its global zinc and precious metal peers CYTD. Its 9.2x FY27E EV/EBITDA is above last 10Y average of 7.3x, but justified by rising share of silver in EBIT. We initiate with Buy and Rs660 PT (at 10x Sep-27E EV/EBITDA), 22% upside incl 4% dividend yield. Key risks are lower silver/zinc prices and mine grades, mine renewals post 2030, and adverse related party event."

Hindustan Zinc Corporate Action:

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

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.

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 1.57%.

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