Synopsis:
Hindustan Copper shares have surged 50% in a month, driven by rising global copper prices, a 20-year Rakha mine lease extension, and ambitious expansion plans to triple ore production by 2030-31, positioning the PSU for strong growth ahead.
Hindustan Copper was formed to take over from National Mineral Development Corporation Ltd. It is the first Indian PSU and only vertically integrated copper producing company and has witnessed a remarkable rally in its stock, fueled by soaring global copper prices, strategic mine lease extensions, and large-scale expansion plans aimed at meeting rising domestic and international demand.
The stock has surged 50% since its September 10 opening, rising from Rs. 244.50 per share to Rs. 365 per share of today’s opening. Hindustan Copper is India’s only public sector copper producer, it has surged around 50% in the past month, marking its strongest upward move since December 2023. The stock nearly touched a new 52-week high and stands out among PSU stocks for this rapid appreciation.
Global Copper Price Surge
A key catalyst has been the disruption at Indonesia’s Grasberg mine, which led to a force majeure (unexpected event) and restricted global copper supplies. As copper prices soared to multi-month highs, analysts highlighted the potential for the largest annual copper deficit in over two decades. Higher copper prices have directly boosted Hindustan Copper’s sales performance and profit outlook.
Rakha Mine Lease Extension
In September 2025, Hindustan Copper successfully secured a new 20-year lease for its Rakha mine. This extension gives the company production visibility for the long term, lowers regulatory and operational risks, and strengthens its position in India’s mineral security strategy.
Ambitious Expansion Plans
Hindustan Copper is executing a robust plan to triple its annual ore production by 2030-31, targeting 12.2 million tonnes per annum. Major capacity upgrades include increasing Malanjkhand mine from 2.9 to 5 MTPA, ramping up Khetri Copper Complex from 1.2 to 2.9 MTPA, and boosting Indian Copper Complex (Jharkhand) output to 4.3 MTPA with Rakha contributing 3 MTPA, Surda 0.9 MTPA, and Kendadih 0.4 MTPA. These expansions align with rising demand from the power, EV, and renewable energy sectors.
Hindustan Copper continues to outperform industry averages, benefiting from favourable commodity prices, strategic asset management, and ambitious growth plans. The company remains well positioned to capitalize on the market dynamics in the coming quarters.
Financials of the company
The company’s sales dropped from Rs. 731 crore in Q4 FY26 to Rs. 516 crore in Q1 FY26. Operating profit decreased to Rs. 212 crore from Rs. 267 crore, while net profit fell from Rs. 191 crore to Rs. 134 crore over the same period.
The company has achieved a ROCE of 23.8% and an ROE of 18.7%. It has also reduced its debt levels and consistently maintained a healthy dividend payout ratio of 30%.
Written by Manideep Appana
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
