Hindustan Zinc shares jump 4% after Q2 net profit more than doubles. Why Jefferies cut target price?

What happened: Hindustan Zinc reported Q2 consolidated net profit of Rs 6,412 crore, up 142% YoY, and Jefferies cut its target price on the stock to Rs 650 from Rs 750. Key numbers: Net profit Rs 6,412 crore vs Rs 2,649 crore YoY. Revenue Rs 15,093 crore, up 76.5%. EBITDA Rs 9,285 crore, up 108%. Margin 62% vs 52%. Shares at Rs 560 on NSE Wednesday morning. Why it matters: Jefferies raised its FY27 EPS estimate by 5% but cut FY28-29 forecasts by 4% on lower silver prices, and said silver price recovery will be key to stock performance.

Hindustan Zinc reported Q2 consolidated net profit of Rs 6,412 crore, up 142% YoY, and Jefferies cut its target price on the stock to Rs 650 from Rs 750.

Jefferies raised its FY27 EPS estimate by 5% but cut FY28-29 forecasts by 4% on lower silver prices, and said silver price recovery will be key to stock performance.