Hindustan Copper (HINDCOPPER)
CyclicalFairStock Score: 54/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹529.05 |
| Market Cap | ₹51,160.4 Cr |
| P/E Ratio | 45.06 |
| ROCE | 23.75% |
| ROE | 25.04% |
| Dividend Yield | 0.46% |
| Profit Growth | 162.59% |
| Debt/Equity | 0.03 |
| Sales Growth | 81.07% |
| Free Cash Flow | ₹142 Cr |
| Promoter Holding | 66.14% |
| 52-Week Range | ₹244.15 — ₹760.05 |
| Sector | Non - Ferrous Metals |
| Book Value | ₹34.53 |
Strengths
- Clean balance sheet: Debt/Equity 0.05, Piotroski F-Score 8/9, Altman Z-Score 11.17
- Strong current profitability: ROE 25.04%, ROCE 23.75%
- Latest quarter healthy: Sales ₹687 Cr, Net Profit ₹156 Cr
- Recent momentum: Sales growth 39.28%, Profit growth 65.83%
- Promoter holding 66.14% provides stability
Concerns
- Extreme valuation: P/E 82.08, P/B 19.94, EV/EBITDA 54.25
- Price far above intrinsic estimates: Graham Number ₹65.40, DCF ₹78.58, margin of safety -765.88%
- 5-year revenue CAGR only 2.99%, suggesting cyclical rather than durable growth
- Negligible dividend yield of 0.26%
AI Analysis
Hindustan Copper is a business I would not buy at today's price, even though parts of its financial scorecard look attractive. The balance sheet is conservative: debt/equity is only 0.05, and the company earns a strong 25.04% ROE and 23.75% ROCE. The latest quarter had ₹687 Cr of sales and ₹156 Cr of net profit, with sales growth of 39.28% and profit growth of 65.83%. That sounds wonderful, but look at the long term: the five-year revenue CAGR is only 2.99%. This tells me the current boom is the copper cycle, not durable franchise growth. Hindustan Copper is a miner and smelter in a commodity industry; it can increase output over time, but it cannot control global copper prices. A Piotroski score of 8/9 and Altman Z-Score of 11.17 confirm financial health, while promoter holding of 66.14% provides stability. But financial strength does not justify any price. At ₹549.45, the market cap is ₹54,763 Cr. I am asked to pay 82.08 times earnings, 19.94 times book, and 54.25 times EV/EBITDA. Graham's number is ₹65.40, and the DCF intrinsic value is ₹78.58. That means a margin of safety of -765.88%. The dividend yield of 0.26% is almost nothing. This is a cyclical stock being priced as if high copper prices will last forever. Value investing requires a margin of safety; here, there is none. I will wait for a better price and keep an eye on copper.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer