HINDCOPPER - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.5

🧾 Core Financial Analysis

📈 Profitability & Growth

PAT Qtr: ₹187 Cr vs ₹62.9 Cr — ↑50.5% QoQ growth, strong earnings rebound.

EPS: ₹4.81 — relatively low, especially given the high stock price.

ROE (18.8%) & ROCE (24.0%) — solid return metrics, indicating decent capital efficiency.

💰 Cash Flow & Debt

Debt-to-Equity: 0.06 — very low debt, balance sheet is healthy.

Dividend Yield: 0.36% — minimal, not a major draw for income investors.

Cash Flow: Likely improving with profit surge, but not consistently strong.

📊 Valuation Metrics

Metric Value Insight

P/E Ratio 53.8 Highly overvalued vs industry PE of 34.7

P/B Ratio ~9.38 Extremely high relative to book value

PEG Ratio 7.03 Suggests growth is not justifying valuation

Intrinsic Value Estimated ~₹180–₹200 Based on earnings and sector benchmarks

🪙 Business Model & Competitive Advantage

Sector: Mining and metals — Hindustan Copper Ltd is India’s only vertically integrated copper producer.

Operations: Covers mining, beneficiation, smelting, refining, and casting.

Moat: Strategic importance in copper supply chain, especially for EVs and renewables.

Growth Drivers: Rising copper demand globally, especially from green energy and infrastructure.

Risks: Commodity price volatility, operational inefficiencies, and policy dependence.

📉 Technical & Sentiment Indicators

RSI: 45.6 — neutral zone, no strong momentum.

MACD: 0.19 — flat, suggesting indecision.

DMA 50 & 200: Price hovering around both — sideways trend.

Volume: Slightly below average — no strong accumulation signal.

💡 Investment Guidance

📌 Entry Zone (If Undervalued)

₹190–₹210 — significantly below current price, closer to intrinsic value.

Avoid fresh entry at current levels unless there's a correction or earnings surprise.

📈 Long-Term Holding View

Hold with caution if already invested.

Valuation is stretched; wait for earnings consistency or copper price tailwinds.

Long-term potential exists due to copper’s strategic role, but entry should be valuation-sensitive.

Target upside only if fundamentals catch up — otherwise, risk of correction remains.

Would you like a comparison with NMDC or Vedanta to assess how Hindustan Copper stacks up in the mining space?

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