Hindustan Zinc Finds Favor as Choice Broking Flags Technical Upside

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Choice Broking has identified Hindustan Zinc Ltd as a compelling buy opportunity following a healthy price correction, citing strong technical indicators and longterm bullish momentum. The recommendation comes amid broader market volatility and renewed interest in metal stocks.

Key Highlights:

Hindustan Zinc continues to trade above its 200week moving average, reinforcing a sustained uptrend and investor confidence.
Technical charts suggest a bullish breakout, with RSI levels supporting upward momentum and swing trading potential.
Choice Broking projects a nearterm price target of Rs 455–485, offering attractive upside from current levels.

Market Context:

The stock recently witnessed a 6% dip following a block deal involving 1.8% equity, sparking shortterm volatility but also creating a favorable entry point for longterm investors.
Promoter Vedanta’s strategic stake reduction is expected to improve liquidity and potentially increase Hindustan Zinc’s weightage in global indices like MSCI.
Despite the correction, Hindustan Zinc remains a cashrich company with consistent dividend payouts and robust fundamentals.

Fundamental Strength:

The company has approved a Rs 12,000 crore capex plan to double its smelting and mining capacity over the next three years, signaling aggressive growth intent.
Silver production is set to rise significantly, with the Debari smelter expected to contribute 30 tonnes annually, enhancing earnings visibility.
FY25 results showed an 18% revenue jump to Rs 34,083 crore and a 33% rise in PAT to Rs 10,353 crore, underscoring operational efficiency.

Sources: Economic Times, Zee Business, Fortune India, Choice Broking Technical Desk, Hindustan Zinc Investor Relations