Govt clarified no intention to sell its 27.92% stake in Hindustan Zinc, curbing OFS speculation.
Jefferies raised target price to ₹750, citing 15% rise in spot zinc and 23% recovery in silver, implying ~27% upside.
Shares hit ₹623, up 5.1% on Aug 26; market indices saw modest gains (Sensex +0.27%, Nifty +0.05%).
Government Clarifies No OFS On August 26, the Indian government confirmed that it is not looking to sell its 27.92% stake in Hindustan Zinc, a statement that immediately lifted investor sentiment. The clarification came after a day of speculation that the government might pare its holding through an Offer for Sale (OFS), following the discounted OFS in Hindustan Copper. A potential 1.5% sale would have fetched roughly ₹3,500‑4,000 crore at current prices, but the DIPAM secretary’s comments have dampened expectations of an imminent share release.
Jefferies Bullish Outlook Jefferies upgraded its target price for Hindustan Zinc to ₹750, a 27% upside from the Tuesday close, citing a 15% rise in spot zinc above its June‑quarter average and a 23% rebound in silver from July lows. The brokerage also raised FY27‑FY29 earnings‑per‑share estimates by 10‑11% to reflect the stronger commodity‑price environment. In contrast, Jefferies maintained a ‘Hold’ rating for Hindalco, raising its target to ₹1,140 but cutting its FY27‑FY29 estimates by 2‑3% due to a 10% dip in aluminium prices.
Market Reaction & Broader Indices Hindustan Zinc shares closed at ₹623 in morning trade, up 5.1% from the previous close of ₹592.60, while Hindalco remained flat at ₹1,050.50. The broader market mirrored a muted rally: the Sensex advanced 207.85 points to 77,863.94 (+0.27%) and the Nifty 50 edged up 12.15 points to 24,346.70 (+0.05%). Year‑to‑date, Hindalco has gained 17.4% while Hindustan Zinc has slipped 3.2%.
