Shares of a miniratna company zoomed 8.22 percent on Tuesday’s intraday trades to reach a fresh 52-week high of ₹ 152.70 apiece on The National Stock Exchange (NSE), after it announced changes in its management.
State-run Hindustan Copper’s shares have gained nearly 30 percent since July 24, 2023, amid management changes in the company. Market experts believe that a rise in copper prices could be fuelling this rally. Copper prices have risen to their highest level in three months amid expectations of a revival in demand in China and growing supply risks from Chile.
Chilean copper mining giant Codelco last week lowered its annual production guidance and raised cost estimates, pushing global copper prices further.
In another development, the company’s shares were in focus last month after a top official said that it is hopeful of commencing mining at its closed Rakha mine in Jharkhand. The official added that this would entail an investment of over ₹ 2,000 crore after obtaining a final clearance from the state government.
The Rakha mine has been closed since 2001. The state government recently gave the company in-principle permission to renew the lease. Hindustan Copper will likely appoint a mine developer-cum-operator for the reopening and expansion of the mine.
According to an exchange filing, Ghanshyam Das Gupta has taken over the charge of the post of Unit Head, Khetri Copper Complex (a Unit of Hindustan Copper) at the close of working hours on July 31 from outgoing Unit Head of Khetri Copper Complex, Shri Sree Kumar.
Gupta has work experience of more than 28 years in the mining industry, including Gold mining, iron-ore mining, cement industry, and aggregate mining industry He worked as Unit Head of the Malanjkhand Unit of the company, where he played a key role in the transformation of open-cast mining to underground mining, according to the release.
Meanwhile, Arun Kumar Shukla ceased to be Chairman and Managing Director (CMD) of Hind Copper on attaining the age of superannuation on July 31.
Ghanshyam Sharma, Director (Finance), of the company, was assigned additional charge of the post of CMD, with effect from August 01.
Hindustan Copper is the first Indian PSU and the only vertically integrated copper-producing company in India. It is engaged in various processes right from copper mining to the final stage of converting copper into saleable products.
With a market capitalization of ₹ 13,645 crores, Hindustan Copper is a small-cap company. It has an ideal return on equity of 14.80 percent and an ideal debt-to-equity ratio of 0.08. Its shares were trading at a price-to-earnings ratio (P/E) of 46.11, which is lower than the industry P/E of 14.06, indicating that the stock might be undervalued as compared to its peers.
The company’s promoters hold a 66.14 percent stake in it, followed by retail investors with 16.17 percent, other domestic institutions with 12.05 percent, mutual funds with 3.84 percent and foreign institutions with 1.80 percent.
Written by Simran Bafna
