Hindustan Copper Ltd.HINDCOPPER₹328.23 +6.32%

Shares of Hindustan Copper Ltd., India’s primary copper producer, extended their surge on Thursday, September 25, recording a fifth consecutive session of gains. The stock has demonstrated strong market momentum, surging by nearly 18% over the last five trading days, reflecting its continuous rise in 10 out of the last 12 sessions. This rally has translated into a substantial gain of 35% for Hindustan Copper stock over the recent 12-session period.

The stock surged over 6% to touch a new high of ₹331. This sharp domestic rise was largely fueled by reports of international copper prices hitting multi-month highs.

The sudden spike in global copper prices followed a major supply disruption: the world’s leading mining company, Freeport-McMoRan, declared force majeure on contracted supplies from its colossal Grasberg mine in Indonesia. Grasberg is the second-largest source of the metal globally, and the news immediately tightened global supply forecasts. Force majeure is a standard contractual clause that legally releases parties from their obligations when an extraordinary, uncontrollable event prevents them from fulfilling contractual duties.

In response to the supply shock, copper for three-month delivery on the London Metal Exchange (LME) rose 3.6% to settle at $10,336.50 per ton on Wednesday, reaching its highest price in over a year. Conversely, Freeport-McMoRan’s shares experienced a significant decline, dropping as much as 15% in New York trading, marking its steepest fall since March 2020.

Hindustan Copper’s recent surge is also underpinned by positive commentary regarding its domestic market potential. Earlier this month, the company highlighted the significant growth potential for copper consumption within India.

The company noted that the demand for copper in the electrical segment is rapidly expanding, driven by growth in the infrastructure sector. Key government initiatives and trends contributing to this sustained demand include affordable housing schemes, rural electrification efforts, the proliferation of renewable energy projects, the push for electric vehicles (EVs), and increased urbanization. Hindustan Copper projects that these government initiatives will further boost the growth of copper-consuming industries, strengthening the company’s long-term outlook.

Over the last three and five years, this stock has delivered multibagger returns of more than 185% and 905%, respectively.

Let’s take a look at its Factor Analysis scores: 

Note: The stock prices mentioned are as of 3:30 pm.

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