Hindustan Zinc Stock Rallies on Strategic Green Energy Investment Plans
Hindustan Zinc Ltd’s share price saw an uptick during intraday trading on Tuesday, even as the broader market remained volatile and key benchmark indices registered a decline of up to 0.5%. The positive movement in Hindustan Zinc’s stock came after the company announced plans to raise funds and revealed a strategic partnership aimed at expanding its green energy capacity. The fund-raising initiative and the focus on green energy signal the company’s commitment to strengthening its sustainability efforts and enhancing operational efficiency. Despite the challenging market environment, the news appeared to bolster investor confidence in the company’s growth prospects, contributing to the upward movement in its share price.
Hindustan Zinc Ltd announced the outcome of the Committee of Directors meeting held on Monday, March 10, 2025. During the meeting, the Board approved a proposal to issue unsecured, redeemable, rated, and listed non-convertible debentures (NCDs) with a total value of up to ₹500 crore. The decision reflects the company’s strategic approach to raising capital through debt instruments, which are expected to support its financial planning and potential growth initiatives. Since the NCDs will be unsecured, they will not be backed by any specific assets of the company, but the “rated” status indicates that the instruments will be evaluated by credit rating agencies, providing investors with an assessment of the company’s creditworthiness. The listing of these NCDs on recognized stock exchanges will allow for greater liquidity and potential investor participation.
Hindustan Zinc Ltd announced on Tuesday its plans to strengthen its partnership with Serentica Renewables to expand its renewable energy (RE) capacity to a total of 530 MW. This marks a significant step in the company’s ongoing efforts to increase its reliance on clean energy and reduce its carbon footprint. Hindustan Zinc had previously signed power delivery agreements with Serentica to source 450 MW of round-the-clock renewable power. The additional capacity of 80 MW will raise the company’s total renewable energy capacity, enabling it to meet approximately 70% of its overall power requirements through green energy sources.
The company also confirmed that the initial flow of renewable power from the existing 450 MW power delivery agreement has already begun, signaling progress in the transition toward a more sustainable energy mix. This expansion aligns with Hindustan Zinc’s broader strategy to enhance energy efficiency, reduce dependency on conventional power sources, and contribute to the global shift toward renewable energy.
On Tuesday, Hindustan Zinc Ltd’s share price opened at ₹421.55 on the Bombay Stock Exchange (BSE), which was slightly lower than the previous day’s closing price of ₹426.70. Despite starting the day on a weaker note, the stock quickly regained momentum and climbed to an intraday high of ₹431.80. Although the share price experienced some volatility throughout the trading session, it managed to trade close to these higher levels for most of the day.
What makes this performance noteworthy is that Hindustan Zinc’s share price gained ground even as the broader market faced pressure from weak global cues. Benchmark indices had corrected by nearly 0.5% during early trading on Tuesday, reflecting the cautious sentiment driven by global market weakness. However, the market showed signs of recovery during intraday trading, which likely contributed to the stock’s ability to sustain its gains. The resilience shown by Hindustan Zinc’s stock amid a challenging market environment highlighted investor confidence in the company’s outlook and recent strategic moves.
Hindustan Zinc Ltd’s share price, despite its recent upward movement, remains significantly below the highs it reached in May last year. On a year-to-date basis, the stock has declined by approximately 4%, reflecting the broader market correction and the impact of prevailing market uncertainties. However, the stock has shown notable resilience in the short term, rebounding by around 7% over the past five trading sessions.
Looking at a longer-term perspective, Hindustan Zinc’s stock has delivered impressive returns to its investors. Over the last five years, the share price has surged by more than 200%, positioning itself as a multibagger stock. This strong long-term performance highlights the company’s ability to generate consistent value for its shareholders despite market fluctuations and periods of volatility. The recent recovery in the stock price, even amid broader market weakness, reflects underlying investor confidence and the company’s strategic positioning in the industry.
