mayur1630

Hindustan Copper Ltd.

Long
NSE:HINDCOPPER   HINDUSTAN COPPER
Hindustan Copper Ltd.

ABOUT
Incorporated in the year 1967, Hindustan Copper Limited (HCL) was formed to take over from National Mineral Development Corporation Ltd. It is the first Indian PSU and the only vertically integrated copper-producing company. HCL is engaged in various processes right from copper mining to the final stage of converting copper into saleable products.

KEY POINTS
Only Indian Company mining Copper
Hindustan Copper Limited(HCL) is the only Public sector undertaking that is engaged in producing Copper right from mining to beneficiation, smelting, refining, casting of refined copper metal, and converting it into saleable products.

Unique features
HCL is holding a lease of more than 80% of the country's copper reserves. The company has well-developed infrastructure facilities, vertically integrated operations & wide distribution network with a well-established customer base.

Products
HCL's main products are 1) Continous Cast Copper rod, 2) Copper Cathode, and 3) Copper Concentrate.
1)Copper Sulphate, 2)Sulphuric acid, 3) Anode Slime, 4) Nickel hydroxide, 5) Reverts are its By-products.

Plant Location
HCL has five Plants located at Taloja in Maharashtra, Jhagadia in Gujarat, Ghatsila in Jharkhand, Malankjand in Madhya Pradesh & Khetrinagar in Rajasthan.

Installed Capacity
HCL's combined refining capacity is 68,500 MT per annum for copper cathode and its smelting capacity of 18,500 MT per annum. Its installed capacity for wire rods at the Taloja plant is 60,000 MT.

Revenue break up - Geography-wise
For FY20, Domestic sales - were 43% and Export sales -were 57% as against FY19, Domestic sales -were 52%, and Export sales - were 48%.

Exports sales - Product wise
During FY20, HCL's product wise exports sales was:- Copper concentrates- 94%, Copper reverts- 2%, Anode slime - 4%

Joint ventures
Khanij Bidesh India Ltd (KABIL) is a JV company between NALCO, HCL & MECL with the objective to identify, acquire, develop, process and make commercial use of strategic and other minerals in Overseas locations with the main intention to boost "Make in India" campaign. HCL has a 30% stake in the JV.

TECHNICAL ANALYSIS.
Time Frame - 1D.
1. Aggressive long in FUT.
2. Call writers are unwinding their position from the 120 Strike price.
3. Copper prices are increasing in MCX.

FUNDAMENTAL ANALYSIS.
Sector: Non-Ferrous Metals
Industry: Mining / Minerals / Metals
1. Market Cap - ₹ 11,749 Cr.
2. Stock P/E - 34.2
3. Price to book value - 5.95
4. Debt to equity - 0.27
5. Free Cash Flow - ₹ 829 Cr.

DISCLAIMER - All analyses are for educational purposes. it is not trading or investment advice.

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