HINDCOPPER - Investment Analysis

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

🪙 Investment Analysis: HINDCOPPER (Hindustan Copper Ltd.)

Investment Rating: 3.5

📌 Key Fundamental Highlights

ROCE: 24.0% and ROE: 18.8% indicate strong capital efficiency and shareholder returns.

Debt-to-Equity of 0.06 suggests a solid financial structure with minimal leverage risk.

EPS: ₹4.81, though modest, is improving — backed by a sharp Qtr Profit Var of +50.5%, showing recent earnings momentum.

Dividend Yield of 0.36% is low — this is a growth-focused play rather than a dividend generator.

📊 Valuation & Price Trend Assessment

P/E of 53.8 is well above the industry PE of 34.7, which is concerning given the small EPS base.

PEG Ratio: 7.03 flags a steep overvaluation relative to earnings growth — caution warranted.

Trading exactly at 50-DMA and near 200-DMA, indicating consolidation.

RSI (45.6) is neutral, and MACD slightly positive (0.19) — trend is stabilizing after a decline.

🎯 Ideal Entry Zone: ₹200 – ₹225 This range is below current levels and aligns with recent support zones and a healthier valuation perspective.

🧭 Strategy for Existing Holders

If already invested, especially below ₹230, consider holding for 2–4 years, focusing on quarterly earnings growth and maintaining strong ROCE/ROE.

Monitor whether earnings sustain above ₹150 Cr per quarter and if PEG moderates toward 3 or below.

Exit Strategy

Watch resistance near ₹330–₹345; consider partial profit booking there.

Reassess holding if PEG remains above 5 and EPS stagnates.

Long-term retention advisable only if metal prices rise and earnings trend continues upward.

HINDCOPPER has potential if you catch the right cycle, but it’s priced for perfection at the moment. Would you like to compare it with other copper producers or dive into macro trends affecting base metals? Let’s unpack it together.

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