⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
HINDCOPPER - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | HINDCOPPER | Market Cap | 47,302 Cr. | Current Price | 489 ₹ | High / Low | 760 ₹ |
| Stock P/E | 70.9 | Book Value | 30.9 ₹ | Dividend Yield | 0.30 % | ROCE | 23.8 % |
| ROE | 18.7 % | Face Value | 5.00 ₹ | DMA 50 | 535 ₹ | DMA 200 | 413 ₹ |
| Chg in FII Hold | 1.51 % | Chg in DII Hold | -0.43 % | PAT Qtr | 156 Cr. | PAT Prev Qtr | 186 Cr. |
| RSI | 36.6 | MACD | -20.4 | Volume | 1,32,50,676 | Avg Vol 1Wk | 1,28,51,229 |
| Low price | 184 ₹ | High price | 760 ₹ | PEG Ratio | 9.45 | Debt to equity | 0.05 |
| 52w Index | 53.0 % | Qtr Profit Var | 149 % | EPS | 6.90 ₹ | Industry PE | 95.2 |
📊 Core Financials
- Quarterly PAT declined from ₹186 Cr. to ₹156 Cr. (~16% sequential drop, though ~149% YoY growth).
- ROE: 18.7% → decent profitability.
- ROCE: 23.8% → strong capital efficiency.
- Debt-to-equity: 0.05 → very low leverage, financially stable.
- Dividend Yield: 0.30% → minimal shareholder returns.
💹 Valuation Indicators
- P/E Ratio: 70.9 vs Industry PE 95.2 → expensive but still lower than sector average.
- P/B Ratio: 15.8 (Current Price ₹489 / Book Value ₹30.9) → highly expensive relative to assets.
- PEG Ratio: 9.45 → valuation stretched compared to earnings growth.
- Intrinsic Value: Current price above fair value, limited near-term upside.
🏢 Business Model & Competitive Advantage
- Hindustan Copper is India’s only vertically integrated copper producer.
- Business model relies on mining, smelting, refining, and continuous demand from infrastructure and electrical industries.
- Competitive advantage: Monopoly in copper mining, government backing, and strategic importance in industrial growth.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near ₹450–₹470 (close to support levels, RSI at 36.6 indicates oversold zone).
- Long-Term Holding: Suitable for investors seeking exposure to copper demand growth, but valuations remain stretched.
✅ Positive
- Strong YoY profit growth (~149%).
- Low debt-to-equity ratio (0.05) ensures financial stability.
- FII holdings increased (+1.51%), showing foreign investor confidence.
⚠️ Limitation
- High P/E ratio (70.9) compared to fair value levels.
- P/B ratio (15.8) indicates significant overvaluation relative to assets.
- DII holdings decreased (-0.43%), showing reduced domestic institutional support.
📉 Company Negative News
- Quarterly PAT declined sequentially from ₹186 Cr. to ₹156 Cr.
- Stock trading below 50 DMA (₹535), indicating weak short-term momentum.
- MACD at -20.4 signals bearish technical trend.
📈 Company Positive News
- Strong YoY profit growth (~149%) highlights operational recovery.
- FII holdings increased significantly (+1.51%), reflecting foreign confidence.
🌐 Industry
- Copper industry PE at 95.2, higher than Hindustan Copper’s 70.9, showing relative undervaluation compared to peers.
- Industry growth driven by infrastructure expansion, renewable energy, and electric vehicle demand.
🔎 Conclusion
- Hindustan Copper is strategically important with strong ROCE and low debt.
- Valuations are stretched, limiting near-term upside despite industry tailwinds.
- Best strategy: Accumulate cautiously near ₹450–₹470 and hold long-term to benefit from rising copper demand in infrastructure and EV sectors.