Hindustan Copper Limited, a Miniratna Category-1 Status Company is a Central Public Sector Undertaking (CPSE) under the administrative control of the Ministry of Mines, Government of India.
Hindustan Copper Limited (HCL) is the only vertically integrated copper producer in India, engaged in a wide spectrum of activities ranging from mining, beneficiation, smelting, refining, and continuous cast rod manufacturing. The firm holds a lease on more than 80% of the country’s copper reserves and has well-developed infrastructure facilities.
The company is engaged in the business of Exploration, Exploitation, Mining of Copper and Copper Ore including Beneficiation of Minerals, Smelting and Refining.
Currently, the company is operating Smelter & Refinery Plant at ICC and the Gujarat Copper Project, Gujarat (GCP) for the production of copper cathode and thereafter conversion of Cathode to Copper Wire Rod at Taloja Copper Project, Taloja, Maharashtra (TCP).
With a market capitalisation of Rs. 37,757.45 crore, the share price of Hindustan Copper Limited jumped by 1.8 percent to Rs. 395.35 in the trading session Saturday, compared to its previous closing price of Rs. 388.10.
A months-long rally in copper prices, caused by financial investors flocking into the market in expectation of supply restrictions, ended with copper hitting a new high.
Futures on the London Metal Exchange surpassed the previous record set in March 2022, rising as much as 4.1 percent to US$11,104.50 a tonne. A severe crunch in the New York market, where prices hit an all-time high last week, is causing chaos in the world of copper globally.
There has been a rush to divert metal supply to the US as a result of the short squeeze, which raised Comex exchange prices to a historic premium over the LME.
Since the beginning of the year, copper prices have increased by more than 25 percent. A rapid tightening of the supply of ore created the possibility that, if smelters respond by lowering their output of refined metal, the world market may encounter the long-promised deficit sooner than anticipated.
Copper bulls have gained optimism due to supply interruptions and a persistent price surge, which has also attracted financial investors to the market in anticipation of additional gains.
The recent surge in copper prices to over $11,000 per tonne is likely to drive up the share price of Hindustan Copper Ltd (HCL). The rise in copper prices signals a positive outlook for Hindustan Copper, indicating a possible increase in the company’s share value. Investors may find this development favourable for potential gains in Hindustan Copper’s stock price.
In terms of financials, HCL reported a 4.7 percent QoQ growth in revenue from operations from Rs. 381.4 crore in Q2 FY23-24 to Rs. 399.3 crore in Q3 FY23-24. During the same period, net profit increased by 3.6 percent from Rs. 60.81 crore to Rs. 63 crore.
The stock has delivered multibagger returns of 276.3 percent in the last one year and 146 percent in the last six months. So far in 2024, the company has given 43.6 percent of positive returns.
Written by Shivani Singh
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