Hindustan Zinc sizzles owing to Zinc prices touching 5 year high

Vedanta group has a lot to cheer in this festive season as Hindustan Zinc, the group’s biggest cash generator is expected to boost volumes owing to surge in zinc prices. Hindustan Zinc shares are rallying on bourses based on two counts viz., zinc prices firming up and the expectation of buy back offer by the group which will bring down the government stakes to less than 25 per cent in the company. Vedanta group owns 64.9 per cent in Hindutan Zinc.

Zinc prices have firmed up by almost 5 per cent in past three to four sessions. The Zinc prices are also at a five year high, which augurs well for Hindutan Zinc.

The buy back offer is interpreted as positive by analysts as the government will lose veto power and the management will have a better say in the board’s decision.

The Vedanta group stocks are rallying on bourses including Vedanta and Cairn India.Hindustan Zinc is trading at Rs 271 per share down by Rs 1.45 per share or 0.53 per cent on Wednesday. The stock has gained by 74 per cent over a one year period.