Hindustan Copper Stumbles on Sale but Copper Cycle Favors Growth
Hindustan Copper Ltd shares fell by 6.5% after the government's offer for sale was closed at ₹514 per share, reducing its stake to 60.1%. The company has seen significant earnings growth due to rising copper prices and limited domestic production capacity.
The global copper price has surged by 45% year-on-year to $14,500 per tonne at the London Metal Exchange (LME), driven by demand-supply imbalance and inventory drawdown. Demand for copper remains solid, especially in electric vehicles, charging infrastructure, renewable energy, and transmission grids.
Hindustan Copper is well-positioned to benefit from the favorable copper cycle due to its sizeable ore reserves of 157 mt and another 610 mt of resources with potential commercial viability. The company plans to invest ₹7,000 crore over the next 5-6 years, targeting 4.7 million tonnes of production in FY27 and aiming to reach 12.2 million tonnes per annum by FY30.