Hindustan Copper Eyes Long-Term Growth with ₹2,400 Cr Jharkhand Mining Target; Stock Up 2%
Business and Industry Overview:
Hindustan Copper Ltd. is a central public sector undertaking under the ownership of the Ministry of Mines, Government of India. It was incorporated on 9th November 1967 under the Companies Act, 1956. It was established as a Govt of India Enterprise to take over all plants, projects, schemes, and studies about the exploration and exploitation of copper deposits from National Mineral Development Corporation Ltd. It is the only company in India engaged in the mining of copper ore and owns all the operating mining leases of Copper ore. It is also the only integrated producer of refined copper (vertically integrated company).
The Company has the facilities for the production & marketing of copper concentrate, copper cathodes, continuous cast copper rods, and by-products, such as anode slime (containing gold, silver, etc.), copper sulfate, and sulphuric acid. Presently, the company is focusing on mining & beneficiation operations and is primarily selling copper concentrate as the main product. HCL’s mines and plants are spread across five operating Units, one each in the States of Rajasthan, Madhya Pradesh, Jharkhand, Maharashtra, and Gujarat, as named below:
Malanjkhand Copper Project (MCP) at Malanjkhand, Madhya Pradesh, Khetri Copper Complex (KCC) at Khetrinagar, Rajasthan, Indian Copper Complex (ICC) at Ghatsila, Jharkhand, Taloja Copper Project (TCP) at Taloja, Maharashtra & Gujarat Copper Project (GCP) at Jhagadia, Gujarat.
Hindustan Copper Limited (HCL) was the sole producer of refined copper till 1995, and the focus was on vertical integration so that the entire quantity of ore produced in its mines was converted into copper cathode and ultimately, wire rod. After the economy’s liberalization, the industry’s copper segment has transformed significantly. Currently, three major players dominate the Indian copper industry. Hindustan Copper Limited (HCL) in the Public Sector, M/s Hindalco Industries Ltd, and M/s Vedanta in the private sector have a current total installed refined copper capacity in the country of 10.28 lakh tonnes. HCLownss all the operating mining leases in the country, mine expansion is underway, and significant mining capacity expansion is to be achieved from 4.0 Mtpa to 12.2 Mtpa in Phase I by FY 2028-29 and thereafter from 12.2
Latest Stock News:
On April 4, 2025, Hindustan Copper’s share price went down by 7.3%. This is a big fall. It happened because of problems in global trade. The metal sector in India is also weak right now. The US added a 25% tax on steel and aluminium. So, countries like Japan, Vietnam, and South Korea are sending more metal to India. This has increased the supply of metal in India. But demand has not increased. When supply is more and demand is less, prices go down.
When prices go down, companies make less profit. Hindustan Copper does not make steel or aluminium. It makes copper. But still, investors are scared of the full metal sector. So, they are selling shares of copper companies too. That is why Hindustan Copper’s share price went down. The share is now trading below its average level. This shows weakness. The share also did worse than other metal companies. In 2025, it went down by 15.7%. In the last year, it went down by 34.9%.
But the company has good plans. It wants to start old mines again. It also wants to open new mines. It will use better technology to save costs. The company wants to raise money by selling bonds. It is also trying to get new land for mining. These plans will help the company produce more copper and earn better profits in the future. Copper demand may grow because of electric vehicles, solar power, and new buildings. If that happens, the company can grow again.
On the same day, April 4, 2025, Hindustan Copper signed an agreement with CODELCO. CODELCO is a big copper company from Chile. Both companies want to work together. They will share ideas and help each other. They will try to do better in mining and in making copper. The agreement is not a legal contract. It only shows that both companies want to work together. The company gave this news to the stock exchange under SEBI rules.
Potentials:
Hindustan Copper Limited (HCL) has made a big plan. The company wants to grow in the next 6 to 7 years. It wants to produce more copper. Right now, it makes less. But it wants to make 12.2 million tonnes of copper ore every year. To do this, it is making its old mines bigger. In Malanjkhand, Madhya Pradesh, the mine will be expanded. This mine is one of the biggest. In Khetri and Kolihan, Rajasthan, two more mines will grow. These two mines now make 1.0 million tonnes per year. HCL wants to increase it to 3.0 million tonnes per year. In Surda, Jharkhand, another mine will also grow. Its work will go from 0.4 million tonnes to 0.9 million tonnes per year. HCL is also finding more copper underground. This is called exploration. In the last two years, it found 122.88 million tonnes of new copper ore. This will help the company in the future. The company is also using new machines. It is trying new methods to work better. It wants to get more copper using less money. It is upgrading how it cleans the ore. It is also working on using less energy. To do all this work, the company needs money. So, it will raise money by selling bonds. This money will help pay for new and ongoing projects. HCL also signed a deal with CODELCO, a copper company from Chile. They will work together. They will share mining ideas. They will also help each other to learn and improve. This deal is not a legal contract. It only shows what both companies want to do together. All these steps show that HCL is ready for the future. In the coming years, copper will be used more. It will be needed for electric vehicles, solar power, and new buildings. HCL wants to grow so it can meet this new copper demand.
Analyst Insights:
- Market capitalisation: ₹ 19,751 Cr.
- Current Price: ₹ 204
- 52-Week High/Low: ₹ 416 / 195
- P/E Ratio: 49.1
- Dividend Yield: 0.45%
- Return on Capital Employed (ROCE): 18.0%
- Return on Equity (ROE): 13.5%
Hindustan Copper Ltd is facing many problems right now. Its total income dropped from ₹2,214 crore in FY22 to ₹1,808 crore in FY23. Profit also went down by 35%, from ₹373 crore to ₹241 crore. This means the company is earning less money than before. Its profit margins also fell. This shows that the company’s costs are going up and it is not managing well.
The company produced more copper from its mines. But it sold less copper in total. Because of this, its earnings dropped. The company’s P/E ratio is very high at 99.51. This means the stock is expensive. Other similar companies like Vedanta and NALCO have much lower P/E ratios. This shows that Hindustan Copper may not be worth the high price.
The company plans to spend ₹5,500 crore to grow its business. This is a big amount. It can put pressure on the company’s profits in the short term. Its return on equity and capital is also average.
Copper demand may grow in the future because of green energy and electric vehicles. But right now, the company is not doing well. So, it is better to hold the stock. Do not buy more at the current price. Wait until the company improves.
