Stock Performance and Market Context
On 28 Jan 2026, Hindustan Zinc Ltd (Stock ID: 855995) touched an intraday peak of Rs.732.6, marking its highest price level in the past year. This achievement comes after a three-day consecutive gain, during which the stock delivered a robust 9% return. Despite a slight underperformance relative to its sector on the day, with a decline of 0.28% compared to the Metal - Non Ferrous sector’s gain of 3.33%, the stock remains firmly above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages.
In comparison, the Sensex opened flat but rallied to close 0.51% higher at 82,278.37 points, still 4.72% shy of its own 52-week high of 86,159.02. Mega-cap stocks led the market’s advance, underscoring the broader positive sentiment in Indian equities.
Long-Term and Recent Returns
Hindustan Zinc Ltd’s one-year performance stands out with a remarkable 67.18% gain, significantly outperforming the Sensex’s 8.43% return over the same period. The stock’s 52-week low was Rs.378.65, highlighting the substantial appreciation in value over the past year. This strong upward trajectory is supported by the company’s position as the largest player in the non-ferrous metals sector, with a market capitalisation of Rs.3,07,012 crores, representing 45.79% of the sector’s total market cap.
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Financial Strength and Operational Metrics
Hindustan Zinc Ltd’s financial metrics underpin its market performance. The company reported its highest quarterly net sales at Rs.10,980 crores, accompanied by a strong profit after tax (PAT) of Rs.3,897.28 crores, reflecting a 47.6% increase compared to the previous four-quarter average. Operating profit to interest ratio reached an impressive 31.05 times, indicating robust earnings relative to interest expenses.
The company’s return on capital employed (ROCE) stands at a high 85.81%, demonstrating efficient capital utilisation. Additionally, the low debt to EBITDA ratio of 0.15 times highlights a strong ability to service debt, contributing to the company’s financial stability.
Valuation and Sector Positioning
Despite the strong performance, Hindustan Zinc Ltd carries a relatively expensive valuation, with an enterprise value to capital employed ratio of 18.4. However, the stock is trading at a discount compared to its peers’ historical averages. The company’s price-to-earnings-to-growth (PEG) ratio is 1.1, reflecting a balance between growth and valuation.
With annual sales of Rs.36,387 crores, Hindustan Zinc Ltd accounts for 16.82% of the non-ferrous metals industry’s revenue, reinforcing its dominant sector position. The company’s long-term growth rate for operating profit has been moderate at an annualised 5.73% over the past five years.
Risks and Shareholding Structure
One notable risk factor is the high percentage of promoter shares pledged, which stands at 90.28%. This could exert additional downward pressure on the stock price during market downturns. Investors should consider this aspect alongside the company’s strong fundamentals and market performance.
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Technical Momentum and Moving Averages
The stock’s current trading above all major moving averages signals sustained bullish momentum. The 5-day, 20-day, 50-day, 100-day, and 200-day moving averages all support the upward trend, reinforcing the stock’s technical strength. This momentum is further highlighted by the stock’s ability to maintain gains despite an intraday low of Rs.705, which represented a 2.97% dip during the trading session.
Sector and Market Leadership
Hindustan Zinc Ltd’s market capitalisation of Rs.3,07,012 crores makes it the largest company in the non-ferrous metals sector. Its substantial weightage of 45.79% in the sector underscores its leadership role. The sector itself has shown resilience, gaining 3.33% on the day, outpacing the broader market’s 0.51% rise in the Sensex.
Over the last three years, one year, and three months, Hindustan Zinc Ltd has consistently outperformed the BSE500 index, reflecting its sustained market-beating performance across multiple time horizons.
Summary of Key Metrics
To summarise, Hindustan Zinc Ltd’s key performance indicators include:
- New 52-week high price: Rs.732.6
- One-year return: 67.18%
- Market capitalisation: Rs.3,07,012 crores
- ROCE: 85.81%
- Debt to EBITDA ratio: 0.15 times
- Quarterly PAT: Rs.3,897.28 crores (47.6% growth)
- Quarterly net sales: Rs.10,980 crores (highest recorded)
- Promoter share pledged: 90.28%
These figures illustrate the company’s robust financial health and market position, which have contributed to its recent price milestone.
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