Synopsis:
Hindustan Copper Limited’s stock surged nearly 20% on strong copper demand from infrastructure, renewable energy, and EV growth, supported by government initiatives like Make in India and the 500 GW renewable target. HCL expects around 20% volume growth and margins above 40% for FY26, boosting investor confidence.
This company is a government-owned copper producer, and has seen its stock surge nearly 20% over the past five market sessions, attracting strong investor attention. The rally is driven by robust demand for copper in the electrical segment, fueled by rapid infrastructure development, renewable energy growth, and rising electric vehicle adoption, alongside strong government support through strategic initiatives.
With a market capitalization of Rs. 27,512 cr, the shares of Hindustan Copper Ltd are currently trading at Rs. 286.65 per share, rallied 20% in last five market sessions from 10th Sept closing of Rs. 244 to yesterday’s high of Rs. 294 per share.
Key factors
Hindustan Copper Limited has seen a significant surge in its share price due to a multi-factor boost in copper demand, especially within the electrical segment. This rise is fueled by large-scale infrastructure growth, expansion of affordable housing, acceleration of rural electrification schemes, increased investments in renewable energy, and the rapid adoption of electric vehicles across India.
The company’s position as the only integrated copper producer in the country gives it an operational edge as demand intensifies from sectors like construction, power distribution, and emerging technologies such as artificial intelligence, which require substantial copper for data centers.
Key government initiatives
Initiatives from the government have created a strong tailwind for the sector, including Make in India, Smart City and Metro projects, the Aatmanirbhar Bharat push in Defence, ambitious renewable energy targets of 500 GW by 2032, and PLI schemes for consumer electronics.
Production Plans and Growth Prospects
Hindustan Copper anticipates volume growth of about 20% for FY26 and expects to maintain operating margins above 40%, supported by operational efficiencies, cost control measures, and robust domestic demand.
Chairman and Managing Director Sanjiv Kumar Singh stated to CNBC TV18 that the company targets producing 4 million tonnes of copper ore in FY26, aiming for 31,000 tonnes of metal in concentrate (MIC), an increase from 24,000 tonnes recorded last year.
HCL is also pursuing new deposits via mineral auctions, collaborating with Chile’s CODELCO for technical expertise, and signing MoUs with Indian PSUs like Coal India and GAIL to strengthen its mining portfolio.
The company is expanding mining capacity from 4 to 12.2 MTPA and plans nearly ₹2,000 crore in capital expenditure over five to six years, boosted by new explorations and added reserves.
About the company
Hindustan Copper Limited (HCL) is a government-owned company and India’s primary integrated copper producer, engaged in mining, processing, and refining copper. It operates across the value chain from exploration and ore production to smelting and downstream products catering to both domestic and international markets. HCL plays a key role in supporting India’s infrastructure, renewable energy, and electrical sectors with a focus on sustainable and efficient operations.
The company reported sales of ₹516 crore, up 5% year-on-year from ₹494 crore in Q1FY25. EBITDA grew 13% to ₹212 crore, while net profit increased 18% to ₹134 crore. Earnings per share (EPS) rose 19% to ₹1.39, compared to ₹1.17 in the same period last year.
Hindustan Copper owns all operating copper ore mining leases in India, controlling about 45% of the country’s copper resources totalling 755.32 million tonnes. Its biggest reserves are in Rajasthan, Madhya Pradesh, and Jharkhand.
Written by Manideep Appana
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