HINDCOPPER - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 4.0

📊 Hindustan Copper (HINDCOPPER) shows strong potential for swing trading. The stock is trading well above its 50 DMA (₹340) and 200 DMA (₹293), reflecting bullish momentum. RSI at 66.4 indicates it is approaching overbought territory, while MACD positive (12.1) confirms upward strength. An optimal entry would be near ₹370–₹380 on minor pullbacks. If already holding, consider exiting around ₹390–₹400, close to its 52-week high and resistance zone.

Positive

• ✅ ROCE (23.8%) and ROE (18.7%) show strong capital efficiency.
• ✅ Quarterly PAT growth from ₹134 Cr. to ₹186 Cr. (+83%) highlights robust earnings momentum.
• ✅ FII holdings increased by 1.34%, reflecting foreign investor confidence.
• ✅ 52-week performance of 98.8% shows strong investor sentiment.
• ✅ Debt-to-equity ratio of 0.05 indicates very low leverage risk.

Limitation

• ⚠️ High P/E of 65.3 compared to book value (₹30.9) suggests stretched valuation.
• ⚠️ PEG ratio of 8.71 indicates growth is not keeping pace with valuation.
• ⚠️ DII holdings dropped by 2.24%, showing reduced domestic institutional support.
• ⚠️ Dividend yield of 0.38% is very low, offering limited income for investors.
• ⚠️ RSI at 66.4 suggests overbought conditions, which may trigger short-term corrections.

Company Negative News

• ❌ High valuation compared to fundamentals could limit upside potential.
• ❌ Reduced DII holdings indicate weakening domestic institutional sentiment.

Company Positive News

• 🌟 Strong quarterly profit growth boosts investor confidence.
• 🌟 High trading volume (3.07 Cr. vs 1.66 Cr. average) shows strong market participation.
• 🌟 Low debt levels ensure financial stability.

Industry

• 🏭 Metals industry trades at PE of 65.3, in line with Hindustan Copper’s valuation, suggesting sector-wide optimism.
• 🏭 Sector growth driven by global copper demand and infrastructure expansion supports long-term prospects.

Conclusion

📌 Hindustan Copper is a technically strong candidate for swing trading, supported by robust profit growth and foreign investor interest. Entry near ₹370–₹380 is optimal, with exit around ₹390–₹400. Traders should be cautious of overbought RSI levels and stretched valuation, but momentum remains favorable in the short term.

Would you like me to also prepare a comparative HTML analysis of Hindustan Copper against another metal sector stock like Hindustan Zinc to highlight relative swing trade opportunities?