Hindustan Copper Limited

Basic Materials — Copper · NSE

₹458.95+₹5.90 (+1.30%)

DalalBaazaar Score

76 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by high debt relative to equity, a beta above 1.3, so it swings harder than the index.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

The 60-second version of Hindustan Copper Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Hindustan Copper Limited engages in the exploration, exploitation, mining, and processing of copper ore metal-in-concentrates in India.

IndustryCopper

SectorBasic Materials

Employees1,154

Annual revenue₹3,064 Cr

How does it make money?

Turns over ₹3,064 Cr a year. Of every ₹100 of sales, about ₹30 reaches shareholders as profit, with ₹50 left at the operating level before interest, tax and depreciation. Each of its 1,154 employees supports ₹2.66 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.66 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, ULTRATECH CEMENT LIMITED, ASIAN PAINTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 34.5%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 27.5% against a peer median of 22.3% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE22.3%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 16.2% and earnings to grow about 10.1% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+16.2%

Est. earnings growth+10.1%

Analysts1

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +84% while net margin moved +69% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+84%

Margin effect+69%

DalalBaazaar Score

76/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Beta of 1.51 — amplifies market moves in both directions
✗ High leverage magnifies any downturn in earnings

Quality vs. Valuation

Company Quality

86/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

49/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

39.1x

3Y Median

89.4x

40 monthly readings · mean 85.0x · range 46.8x–142.6x

Sector Median

28.7x

median of 4 sector peers

🟢Current valuation is approximately 56% below its 3y median of 89.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 36% above the peer median of 28.7x.

vs. its own history

Cheap

89.4x median over 40 months · -56%

vs. sector peers

Expensive

28.7x median of 4 peers · +36%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

28.6x

PEG

0.85

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 34.0% to 50.4% over 3 years.
Debt is being paid down
Total debt is down 29% over 3 years.
Cash generation is improving
Free cash flow is up 212% over 3 years.
Return on equity is rising
ROE has improved from 14.2% to 27.5%.
Return on capital is rising
ROCE has improved from 17.3% to 34.5%.
High return on capital employed
ROCE of 34.5% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 2 high

🔴High leverageFinancial
Debt/Equity of 3.32x — earnings must service borrowings before shareholders see anything.
🔴Inventory building faster than salesFinancial
Inventory up 232% against revenue up 84% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 34.5% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 34.0% to 50.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 29% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 56% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 3.32x. Interest is payable whether or not the business has a good year.
A premium to the sector to defend
It trades 36% above the peer median. That premium needs a reason that persists, or it closes.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 17% a year✓ 22.5% CAGR
Latest reported year was 81.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 48%✓ 50.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹1,017 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 32%✓ 34.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹44,382 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

39.1x

Fair

Fairly valued against the generic band

P/B Ratio

13.29x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹11.74

Profitable

Profitable on a per-share basis

ROE

27.5%

Strong

Strong capital efficiency

ROCE

34.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

3.32x

High

High leverage

Revenue Growth (YoY)

81.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

161.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.62%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹1,017 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

22.2x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

48.9%

Good

Healthy core-business profitability

Net Margin

32.5%

Good

Strong bottom-line conversion

Current Ratio

1.68

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.51

High swing

Swings more than the market in both directions

52W Range Position

33%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

480.0 / 512.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

31.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,665 Cr	₹1,705 Cr	₹2,059 Cr	₹3,064 Cr	+22.5%
EBITDA	₹566 Cr	₹610 Cr	₹834 Cr	₹1,544 Cr	+39.7%
EBITDA Margin	34.0%	35.8%	40.5%	50.4%	—
PAT (Net Profit)	₹295 Cr	₹295 Cr	₹465 Cr	₹919 Cr	+45.9%
EPS	₹3.06	₹3.05	₹4.81	₹9.5	+45.9%
ROE	14.2%	12.9%	17.5%	27.5%	—
ROCE	17.3%	15.5%	21.1%	34.5%	—
Total Debt	₹157 Cr	₹223 Cr	₹167 Cr	₹111 Cr	-10.9%
Free Cash Flow	₹326 Cr	-₹193 Cr	₹124 Cr	₹1,017 Cr	+46.1%

🟢 Revenue has grown at 22.5% a year over 3 years.

🟢 EBITDA has grown at 39.7% a year over 3 years.

🟢 EBITDA Margin has risen from 34.0% to 50.4% over 3 years (+16.4 pts).

🟢 PAT (Net Profit) has grown at 45.9% a year over 3 years.

🟢 EPS has grown at 45.9% a year over 3 years.

🟢 ROE has risen from 14.2% to 27.5% over 3 years (+13.3 pts).

🟢 ROCE has risen from 17.3% to 34.5% over 3 years (+17.2 pts).

🟢 Total Debt has shrunk at 10.9% a year over 3 years.

🟢 Free Cash Flow has grown at 46.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4,416 Cr

Total Liabilities

₹1,073 Cr

Cash & Equivalents

₹396 Cr

Operating Cash Flow

₹1,474 Cr

Capex

-₹456 Cr

Shareholding (proxy)

Institutional Holding

8.9%

Insider Holding

60.1%

Corporate Actions

Dividend Rate

₹2.86

Ex-Dividend Date

16 Sept 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹715

+55.8% vs CMP

Target Range

₹715 – ₹715

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
ULTRATECH CEMENT LIMITED	37.6x	11.1%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

4 mixed2 general

Hindustan Copper Share Price Target 2027: Base and Bull Case

Univest, 09 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Hindustan Copper shareholders to consider QIP, ₹500 crore NCD issue at AGM; shares fall

Upstox, 13 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Hindustan Copper shares gain 3% as company plans Rs 7,000 crore capital investment in next 5 years

The Economic Times, 22 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Hindustan Copper Share Price Falls 7% as Government opens OFS on discount

India Infoline, 25 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Hindustan Copper after OFS: Pros and cons investors should know

Livemint, 01 Sept

Hindustan Zinc, Nalco, Vedanta, SAIL, Hindustan Copper, To Hindalco: Why Are Metal Stocks Falling Today?

Goodreturns, 15 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingValuation

WeakRisk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑