Shares of Hindustan Copper, India’s sole copper ore mining company, have soared by 118% over the past five months, riding the wave of escalating copper prices worldwide.
The company witnessed an impressive return of 215% over the last year, reaching a 12-year high of ₹312 apiece in the previous trading session, marking a 12.5% surge.
Benefiting from the surge in global copper prices, Hindustan Copper stands out as the solitary copper ore mining entity in India, equipped with fully developed infrastructure facilities.
The recent upswing in copper prices was fueled by China’s expanding manufacturing activity, reflected in the manufacturing Purchasing Managers Index (PMI) climbing to 50.8 in March, indicating growth in the world’s second-largest economy.
Additionally, speculation about the Federal Reserve possibly ending its interest rate hike cycle bolstered copper prices, prompting a surge in demand and expectations of reduced supply.
Hindustan Copper’s production also showed promising growth, with a 21% increase in copper ore mine production and a 5% rise in metal-in-concentrate production during the nine months ending December 2023 compared to the same period last year.
The company’s unique position as the sole public sector undertaking engaged in the entire copper production process, coupled with the growing demand for copper in India driven by economic expansion and the transition to renewable energy, positions it favorably for future growth.
With India’s per capita copper consumption expected to rise from 0.6 kg to 1 kg in the coming years, Hindustan Copper is poised to capitalize on the burgeoning demand, especially from sectors such as renewable energy and electric vehicles.
Disclaimer: Investors are advised to consult certified experts before making any investment decisions.
