Hindustan Copper: Strong Fundamentals Drive Buy Rating Amid Global Industry Challenges
Domestic brokerage Anand Rathi has maintained its 'Buy' rating on Hindustan Copper Ltd shares, citing copper fundamentals among the strongest in the non-ferrous metals space. Global copper miners such as First Quantum Minerals, Ivanhoe, and Southern Copper are trading at or near their 10-year multiple peaks, with forward EV/Ebitda multiples of 14.6 times, 13 times, and 14.4 times, respectively.
Anand Rathi notes that tighter global copper inventories, elevated prices, strong operational visibility, the company's best-ever first-quarter performance, and a multi-decade production runway support its positive view on Hindustan Copper. Global inventories at the LME and SHFE have tightened further due to a surge in shipments to the US ahead of a tariff decision.
Copper stocks outside the US have also been falling consistently, with current inventory at about 52% - the lowest since January 2026. Anand Rathi attributes this to a drawdown of about 47% from LME warehouses in South Korea, Taiwan, and Singapore. The brokerage expects global prices to remain elevated due to mine disruptions and export bans.
Hindustan Copper's revenue rose 81.4% year-on-year to Rs 937 crore in the June quarter, ahead of Anand Rathi's estimate of Rs 855 crore. Ebitda jumped 139.4% YoY to Rs 510 crore with an Ebitda margin of 54.2%. The company's mine life is supported by renewed leases and potential revivals of the Pathargora block in Jharkhand and the Dikchu block in Sikkim.
Anand Rathi highlights that Hindustan Copper's cash cost, at about $2.8 per pound, is comparable with global peers such as China Gold International, Sociedad Minera El Brocal, Atalaya, Ivanhoe, and Glencore.