Hind Copper - Itni TEJI kyun hai Bhai?

By Research Desk
about 2 months ago

We refer to our artcle carried here on 24th Dec 20,  “Hindudstan Copper - an untapped GOLD Pot” wherein worth of Hindustan Copper (HCL) was narrated, when share was ruling at Rs. 61. Now share price is at Rs. 150, giving a gain of over 145% in 3 months.

HCL, a PSU, is India's only vertically integrated copper producing company, manufacturing copper, from mining to beneficiation, smelting, refining and casting of refined copper metal. HCL has access to over 40% of copper ore resources of India, with an estimated copper ore reserves of 5,900 lakh tonne, as on 1-4-2019.Copper is ruling at 12 year high on LME and this Base Metal is likely to show good growth in consumption, because of 3x times more use of Copper seen in EV.

HCL has posted PAT of Rs. 104 crore for Q3FY21, while same is at Rs. 149 cr for 9M FY21, which was net loss of Rs. 592 cr for FY 20. Govt as promoter is holding 76.05% stake, while LIC and other PSU Insurers are holding 13.72%, with 10.23% stake as retail float. M Cap at sub Rs. 14 crore impliess float of Rs. 1,400 crore only. Govt having identified this company as non strategic, may see strategic sale in FY 22, which will be the most logical and sensible move in the larger interests of the nation, by tapping unmined copper ore.

If it happens, it reminds us of Hindustan Zinc privatisation move, done by NDA Govt in 2002, which has shown 75 times increase in share price of Hind Zinc, in about 19 years.
This is not a Buy recommendation and stock recommendations are only provided exclusively to our paid members in the Member Zone.

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