In Friday’s trading session, shares of one of the leading PSU stock under the Ministry of Mines, Government of India, specialising in the mining, beneficiation, smelting, refining, and production of copper metal, jumped 2 percent following the Mining Services Agreement for Rs.2,700 Crores with South West Mining Limited (SWML)
Price action
With a market capitalization of Rs. 22,744 crores on Friday, the shares of Hindustan Copper Limited rose by 1.9 percent, trading at Rs.238.50 making a high of Rs. 240.30 per share compared to its previous closing price of Rs. 235.78 per share.
What Happened
Hindustan Copper Limited, specializing in the mining, beneficiation, smelting, refining, and production of copper metal, has appointed South West Mining Limited (SWML) as the Mine Developer cum Operator (MDO) for the reopening and expansion of the Rakha Copper Mine, as well as the development of a new underground mine at Chapri and the commissioning of a new concentrator plant.
This agreement, signed on January 9, 2025, will last for 20 years, with a possibility of a 10-year extension. The Rakha Copper Mine has been inactive since 2001 due to unviable operations.
The Mining Services Agreement was signed in the presence of prominent officials, including Shri G. Kishan Reddy, Union Minister of Coal and Mines. The total capital expenditure for this project is estimated to be around Rs. 2,700 crore, and it is expected to create approximately 10,000 direct and indirect jobs.
About the Company
Hindustan Copper Limited (HCL) is a public sector undertaking and one of the largest integrated copper producers in India. Established in 1967, the company is primarily engaged in mining, beneficiation, smelting, refining, and the production of copper metal.
HCL operates several mining and processing facilities across India, including the renowned Khetri Copper Complex and Malanjkhand Copper Project. It plays a significant role in the Indian economy by supplying copper, which is crucial for industries such as electrical, electronics, transportation, and construction.
It is committed to sustainable development, HCL incorporates advanced technologies for efficient resource utilization and environmental protection. As a state-owned company, Hindustan Copper also contributes to national economic growth through employment generation and local community development.
Shareholding Pattern
Hindustan Copper Limited’s ownership is divided as follows: promoters hold 66.14 percent, Foreign Institutional Investors (FIIs) have 3.30 percent, Domestic Institutional Investors (DIIs) own 9.25 percent, and the public holds 21.32 percent.
Financials
The company’s revenue rose by 40 percent from Rs 392.55 crore to Rs 550.05 crore in Q2FY24-25. Meanwhile, Net profit grew from Rs 60.7 crores to 101.67 crore during the same period.
Key Financial ratios
Hindustan Copper Limited (HCL) has an impressive Return on Equity (RoE) of 16.71 percent and a Return on Capital Employed (RoCE) of 20.66 percent. Furthermore, the company’s debt-to-equity ratio is 0.04.
Written by Sridhar J
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