1. At a Glance — PSU With a Pickaxe and a Valuation Problem
Hindustan Copper Ltd (HCL) is that rare Indian PSU which actually digs things out of the ground, not files out of cupboards. At a market cap of ₹56,363 Cr and a stock price of ₹583, HCL is currently valued like a tech startup but operates like a 50-year-old mining PSU that just discovered PowerPoint.
Q3 FY26 numbers were undeniably spicy: Revenue ₹687 Cr (+110% YoY), PAT ₹156 Cr (+149% YoY), operating margins hovering around 36%, and debt reduced to a polite ₹142 Cr. ROCE at 23.8% and ROE at 18.7% look respectable even by private-sector standards.
But here’s the punchline: the stock trades at 84× earnings, 18.9× book value, and EV/EBITDA of 51.5×. That’s not PSU valuation — that’s copper coated with gold leaf.
Is the market betting on copper scarcity, PSU reform, or just momentum intoxication? Or is this simply “only copper miner in India” premium on steroids? Let’s dig. Literally.
2. Introduction — India’s Only Copper Miner, Finally Acting Like One
Hindustan Copper Limited was incorporated in 1967, formed by carving out copper assets from NMDC. For decades, it existed mostly as a case study in how not to exploit natural resources. Then something changed.
India woke up to electrification, renewables, EVs, grid upgrades, defence manufacturing, and suddenly copper wasn’t just plumbing metal — it became strategic. And guess what? India has only one company mining copper domestically.
HCL owns all operating copper mining leases in India, has access to ~45% of India’s copper ore reserves, and controls the entire value chain — mining, beneficiation, smelting, refining, and rod manufacturing. No imports drama. No tolling dependence (in theory).
With 755.32 million tonnes of resources and reserves and leases valid till 2040+, HCL
is not short of rocks. It was short of execution. FY25–FY26 is where execution finally showed up — along with market euphoria.
But is this a structural turnaround or just copper prices + PSU re-rating + retail FOMO? Hold that thought.
3. Business Model — WTF Do They Even Do?
Think of HCL as India’s copper pipeline — except the pipeline starts underground.
Step 1: Mining
Copper ore is extracted from mines like Malanjkhand (MP), Ghatsila (Jharkhand), and Khetri (Rajasthan). Mining capacity in FY25 stood at ~3.5 MTPA, which management wants to inflate to 12.2 MTPA by FY31. Ambitious? Yes. Impossible? Not really — if PSU inertia doesn’t strike.
Step 2: Beneficiation
Ore is processed to produce copper concentrate. This is where a lot of efficiency gains are now being targeted.
Step 3: Smelting & Refining
Concentrate becomes copper cathode. This is capital intensive and margin sensitive.
Step 4: Rod Manufacturing
Continuous cast copper rods used in wires, cables, transformers, EV motors — the good stuff.
HCL doesn’t sell brands. It sells industrial oxygen for India’s electrification story. Boring? Maybe. Strategic? Absolutely.
4. Financials Overview — Numbers That Made the Market Go Crazy
Annualised EPS Rule Applied:
Q3 EPS = ₹1.62
Average
