Buy Hindustan Copper; target of Rs 450: Anand Rathi

Anand Rathi's research report on Hindustan Copper

Production volumes for Hindustan Copper (HCP) are expected to increase more than 3.5x to 12.2m tonne by FY31 driven by extension of mining lease. Global copper supply growth on other hand is expected to be muted given operational disruptions across major copper-producing regions and rising social-environmental awareness driving lead time to develop a new copper mine to ~15-17 years. The company supplies copper concentrate (17-26% grade) to HNDL and Kutch Copper, meeting ~4% of domestic supply. As the demand for copper is expected to increase driven by new-age applications such as RE, digital infrastructure, EV, AI Data Centre and advanced manufacturing, the domestic demand is expected to more than double over the next decade.

Outlook

We expect 25.3%/26.8%/33% revenue/EBITDA/APAT CAGR over FY25-31 and initiate with a BUY with DCF-based TP of Rs 450.

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