Hindustan Zinc, MCX shares gain up to 9% as Silver prices hit record high

Business Standard

a day ago

Hindustan Zinc share price, MCX share price: Shares of Hindustan Zinc (Hind Zinc) and Multi Commodity Exchange (MCX) extended gains on Friday, June 6, as silver prices soared to record highs. The two stocks have rallied up to 9 per cent over the past two sessions on the BSE.
Hindustan Zinc today rose 3.04 per cent to hit an intraday high of ₹507.10, while MCX jumped 5.21 per cent to ₹7,472.80.
Cumulatively, the stocks have gained 7.02 per cent and 8.61 per cent, respectively, over the past two trading days.
Why are Hindustan Zinc, MCX shares rising?
The rally in these stocks followed a sharp uptick in silver prices, which continued to rise after reaching a new record high on June 5.
In India, silver prices today jumped by about ₹3,000 to ₹1,07,000 per kilogramme, up from ₹1,04,100 in the previous session. The surge is driven by heightened global economic uncertainty and increased safe-haven demand.
On Thursday, silver had touched an all-time high of around ₹1,04,100 per kilogramme in the national capital.
Hindustan Zinc, notably India's only and the world's third-largest silver producer with an annual capacity of 800 metric tonnes (MT), stands to benefit from the rally in silver prices.
However, silver production by Hindustan Zinc had fallen 7 per cent year-on-year (Y-o-Y) to 177 MT, from 189 MT in the same quarter a year ago (Q4FY24).
Hindustan Zinc, MCX Q4 results
Hindustan Zinc delivered a strong performance in Q4 FY24-25, reporting its highest-ever fourth-quarter revenue at ₹9,087 crore, marking a 20 per cent year-on-year (Y-o-Y) growth. Ebitda rose 32 per cent Y-o-Y to ₹4,816 crore with Ebitda margin of approximately 53 per cent, up nearly 500 basis points Y-o-Y.
The company also posted its best-ever Q4 profit after tax at ₹3,003 crore, up 47 per cent Y-o-Y. Notably, it achieved a 16-quarter low in zinc cost of production at $994 per metric tonne, improving 5 per cent Y-o-Y.
Multi Commodity Exchange (MCX), too, saw robust growth in Q4, with total income rising ~61 per cent Y-o-Y to ₹320.49 crore. Operating income surged to ₹291.33 crore, while Ebitda and PAT margins stood at an impressive 59 per cent and 42 per cent, respectively. Net profit rose to ₹135.46 crore, up from ₹87.87 crore in the same period last year.
The Exchange saw a 94 per cent Y-o-Y jump in Options' notional average daily turnover (ADT) to ₹2,20,936 crore. Gold and silver deliveries totaled 1.46 tonnes and 174.26 tonnes, respectively, and 19,397 tonnes of base metals were delivered through the Exchange. MCX also recorded its highest-ever daily turnover at ₹5,83,572 crore on April 30, 2025.
At 11:40 AM, Hindustan Zinc was trading 1.30 per cent higher at 498.50, while MCX was 5.09 per cent at 7464. In comparison, BSE sensex was trading 0.85 per cent higher at 82,131.61 levels.