Experts Recommend Buying Vedanta Shares Following Strong Hindustan Zinc Q2 Results

Vedanta shares are expected to gain ground after Hindustan Zinc reported strong Q2 results that beat market estimates with an EBITDA of 9,290 crore rupees, up 14.20% from the previous quarter. Analysts point out that this growth came from a lower zinc cost of production at $703 per tonne compared to $851 per tonne in the first quarter, supported by higher sulfuric acid realisations, higher volumes of silver and lead, and currency depreciation. Shweta Dikshit, Deputy Vice President for Metals and Mining at Systematix Institutional Equities, noted that Hindustan Zinc posted a Q2 revenue of 14,582 crore rupees, which is 12% above estimates. The firm raised its EBITDA estimates and gave a buy tag with a revised target price of 677 rupees per share. Akhilesh Kumar, Research Analyst at Emkay Global Financial Services, stated that Vedanta is set to benefit because Hindustan Zinc contributes 90% of its consolidated EBITDA. Emkay maintained a buy rating on Vedanta with a target price of 350 rupees per share.

Context

Hindustan Zinc is a subsidiary of the Vedanta Group, meaning its financial performance directly impacts Vedanta's overall earnings. Market analysts often track metal producers closely by evaluating production costs, by-product sales, and global commodity prices to determine share price targets.