Stock to buy: Hindustan Copper share price gained over a percent on Tuesday after brokerage firm Anand Rathi assigned a ‘Buy’ call on the stock. The brokerage firm expects the multibagger Hindustan Copper stock to see more decent upside based on the technical charts.
Hindustan Copper shares are witnessing a double bottom kind of formation on the daily chart after a bit consolidation and a corrective move.
“The support of double bottom formation coincides with the support from the Ichimoku flat line. In addition, we are witnessing a fresh trend line breakout in the Hindustan Copper stock and that depicts that the rally might resume,” Anand Rathi said.
Thus, it advises traders to go long in Hindustan Copper shares near ₹336 – 330 levels, with a stop loss of ₹299 for the upside target of ₹390 - 410 in the coming months. The timeframe for the trade is 1-3 months. Hindustan Copper share price target implies an upside potential of nearly 20% from Monday’s closing price.
Hindustan Copper shares hit a 52-week high of ₹415.60 apiece on May 22, 2024, and a 52-week low of ₹115.90 on July 13, 2023. The market capitalization of Hindustan Copper is around ₹33,435 crore.
Hindustan Copper is the only vertically integrated copper producing company in India and is engaged in processes right from copper mining to the final stage of converting copper into saleable products.
For the quarter ended March 2024, Hindustan Copper reported a consolidated net profit of ₹124.75 crore, registering a drop of 5.61% from ₹132.17 crore in the year-ago quarter. The company’s revenue from operations in Q4FY24 rose marginally YoY to ₹565.37 crore.
Copper prices are expected to surge - on an extended period of deficit in the metal market based on its supply and demand forecasts. Per capita copper consumption in India is very low compared to other major countries such as China and the US. Improvement in manufacturing activity in the US and China is likely to boost demand for copper, Anand Rathi said.
Hindustan Copper share price has delivered multibagger returns of 190% in one year, while the stock is up over 26% year-to-date (YTD). Hindustan Copper shares have gained more than 9% in one week.
At 11:35 am, Hindustan Copper shares were trading 1.21% higher at ₹346.30 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
