1:5 Split, 1:1 Bonus, 39 Dividend So Far: Hindustan Zinc Share Price Falls As Silver Rate Dips 2%; Buy Time?

Hindustan Zinc share price plunged by nearly 2% in the early trade of February 10, as silver rates in India decline amidst weak global cues. Silver prices across grams have dropped around 2% and 1Kg silver has erased its pivotal Rs 2.6 lakh mark. The Vedanta-backed zinc company is among the top producers of silver in India. HZL even reported a strong Q3 results for FY26 due to surge in product and record rally of silver in that quarter. Accordingly, impact in silver prices is important for Hindustan Zinc.

Hindustan Zinc Share Price:

At the time of writing, HZL share price traded at Rs 619.20 apiece, down by 1.53% on BSE with market cap of Rs 2,61,631.75 crore. The stock is near its day's low of Rs 618.50 apiece.

The performance comes after HZL shares gained nearly 3.5% yesterday, amidst bullish trend in silver. In the previous session, Silver traded between Rs 2.62 lakh to Rs 2.65 lakh mark and rose by 6% to 10%.

Data from Geojit revealed that during Q3FY26, HZL's revenue in silver rose by 83% YoY ti Rs 2,675 crore, druven by 74% increase in silver prices to $54.7 per ounce in that quarter. This was best performing segment for HZL as zinc revenue rose by 15% YoY.

Silver Rates In India:

Physical silver price in India dropped by Rs 10,000 to Rs 2.90 lakh on February 10. This comes after silver reclaimed Rs 3 lakh mark yesterday.

Meanwhile, at MCX, silver futures with March 2026 expiry, traded at Rs 2,57,700 per 1KG, down by Rs 4,920 or 1.9%. Silver has touched an intraday low of Rs 2,56,864 per 1Kg from the previous close of Rs 2,62,620 per 1Kg.

Silver is currently down by nearly 39% from all-time high of Rs 4,20,048 per 1Kg which was recorded on January 29, 2026. Since then, silver price is under pressure globally.

Hindustan Zinc Share Price Recommendation:

The consensus recommendation from 16 analysts for Hindustan Zinc is HOLD, as per Trendlyne data. EPS is expected to grow by 26.3% in FY26. The average target price is of Rs 638.19 apiece, which signals a potential of 3.20% upside ahead.

However, analysts at Geojit 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. 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.

Also, analysts added that the company's expansion plans for the Rajpura Dariba and Zawar mines are expected to add volume and potentially increase silver production. Hence, they have upgraded their rating on the stock to HOLD, based on 10.4x FY28E EV/EBITDA, with a rolled-forward target price of Rs. 688.

Hindustan Zinc Corporate Actions:

The zinc and silver giant 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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