Anand Rathi Sticks With 'Buy' on Hindustan Copper Amid OFS Pressure

Anand Rathi Institutional Equities has maintained its 'Buy' rating on Hindustan Copper, with a target price of ₹715. According to Parthiv Jhonsa, Vice President at Anand Rathi Institutional Equities, the stock's premium valuation is justified by rising production, higher copper prices, and improving earnings visibility.

Jhonsa expects EBITDA to rise to ₹2,500 crore in FY27 and potentially reach ₹4,800-5,000 crore over the next five to six years. He believes the recent stake sale does not change the company's underlying fundamentals and that OFS pressure may fade.

The analyst points out that global copper miners command elevated valuations due to the metal's strong long-term outlook, and Hindustan Copper's valuation is not as expensive as it appears. Jhonsa expects ore production to reach around 4.7 million tonnes this year, while MIC volumes could rise to about 34,500 tonnes.

He also highlights copper prices, rupee depreciation, higher volumes, and low TC/RCs as key drivers supporting Hindustan Copper's earnings growth. Jhonsa expects the company to generate around ₹2,500 crore of EBITDA in FY27, rising to ₹2,850-2,900 crore in FY28.