The shares of this miniratna stock surged over 4 percent on Tuesday, after reports indicated that the company is going to bid for rare earth magnets along with other players. The company is engaged in various processes, right from copper mining to the final stage of converting copper into saleable products.
With a market capitalisation of Rs 24,867 crores, the shares of Hindustan Copper Ltd are currently trading at Rs 257 per share, down by 27.11 percent from its 52-week high of Rs 352.60 per share. Over the past five years, the stock has delivered an impressive return of 676 percent.
According to sources, Hindustan Copper Ltd (HCL), a Miniratna PSU under the Ministry of Mines, is diversifying into the field of critical and rare earth minerals by proposing to bid for mining mineral blocks in association with IOCL, GAIL, and RITES. HCL is going to sign a non-binding agreement with IOCL and GAIL regarding joint bidding in future e-auctions.
HCL is also engaging with Coal India Ltd for project work in Chile. The team is actively identifying barriers to estimate the possibility for participation. Earlier this month, Hindustan Copper Ltd signed a Memorandum of Understanding with RITES to jointly engage on plans to develop supply chains for metals and minerals with an emphasis towards exploration, extraction, and production either in India or internationally.
Financial Highlights
The company reported a revenue of Rs 2,071 crores, up by 20.62 percent from its FY24 revenue of Rs 1,717 crores. Additionally, the company reported a net profit growth of 57.63 percent to Rs 465 crore in FY25 from Rs 295 crores in FY24.
The stock delivered an ROE and ROCE of 18.81 percent and 24 percent respectively, and is currently trading at a P/E of 53.58x as compared to its industry average of 35.41x.
Hindustan Copper Limited is a public sector company engaged in the exploration, mining, and processing of copper and copper ores in India. It carries out beneficiation, smelting, and refining of minerals to produce various copper products.
The main operation for Hindustan Copper is the Malanjkhand Copper Project located in Madhya Pradesh. Hindustan Copper produces copper cathodes, copper concentrates, continuous cast copper rods, copper sulphate, sulphuric acid, reverts, anode slime, and nickel cathodes. Hindustan Copper exports copper products internationally.
Written by Satyajeet Mukherjee
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