Hindustan Copper Limited (HCL)- is a Kolkata based PSU incorporated on 9th November 1967, has the distinction of being the nation's only vertically integrated copper producing company as it manufactures copper right from the stage of mining to beneficiation, smelting, refining and casting of refined copper metal into downstream saleable products.
HCL is the only operating copper ore mining company in India owning all the operating mining lease of copper ore with proven experience and expertise in developing and operating copper mines. It has access to about 2/5thof India's copper ore reserves and resources with an estimated reserves of close to 167Million tonnes. The company is currently planning to increase the capacity from 3.97 Mtpa to 12.2 Mtpa which is cur rently under implementation as part of Phase I and in the next phase i.e. Phase II, capacity will get increased from 12.2 Mtpa to 20.2 Mtpa.
The company mines and plants are spread across five operating Units, one each in the States of Rajasthan, Madhya Pradesh, Jharkhand, Maharashtra and Gujarat. The Company markets copper cathodes, copper wire bar, continuous cast copper rod and by-products, such as anode slime (containing gold, silver, etc.), copper sulphate and sulphuric acid. In normal practice, more than 90% of the sales revenue is generated from cathode and continuous cast copper rods. In concluded financial year 2020-21 with a net profit of ? 109.98 crore, compared to a loss of ? 598.21 crore in the previous fiscal year 2019-20. The central public-sector enterprises (CPSE) under the Ministry of Mines, reported a total income of ? 1,821.61 crore in fiscal 2020-21, compared to ? 888.81 crore in the previous financial year.
The public-sector company declared a dividend of a total amount of ? 33.85 crore to Government of India its major shareholder besides reducing its debt burden which resulted in a debt equity ratio of 2.11 lower from the previ ous year's mark of 4.21.India is the 6thlargest importer of copper ore and concentrates in the last fe years.
Equipmentwas the largest end use sector followed by building construction and Infrastructure. The average per capita consumption of Copper in the world is 3.2KG compared to 8.4 Kg and 0.5Kg in China and India respectively. All the initiatives by government like Make in India which includes 100GW renewable energy, PLI scheme for electronic industry, electric vehicle will signifi cantly increase the copper demand and consumption exponentially in the coming years. After AIR INDIA successful divestment, next on the line is HCL where Government of India holds 62% be sides LIC with 15% is also on radar by big business houses like Anil Agarwal of Vedanta, Adani etc...Investors who had missed the divestment opportunity through Hindustan Zinc in 2003, may get another opportunity this time through Hindustan Copper. Investor with above average risk appetite and should have the patience to hold for 03 to 05 years should accumulate on every decline and HCL could soon become a huge dark horse/best divestment story on the Indian bourses above par with Hindustan Zinc. Stock has the potential to deliver 1000% returns for sure from a three-five year perspective.
