Copper stock jumps 4% after securing new copper block in Madhya Pradesh

Synopsis: Hindustan Copper shares rally upto 4% in the day’s trade as they announced to the exchanges that it has been named the ‘Preferred Bidder’ for a new copper block in Madhya Pradesh.

The shares of the Mid-Cap company specialising in the entire value chain of copper production, being the nation’s only vertically integrated producer, are in focus as they have rallied upto 4 percent in the intraday trade. In this article lets explore the reason for the Rally of the stock.

With a market capitalization of Rs. 53,476.43 Crores on Tuesday, the shares of Hindustan Copper Ltd rose upto 3.8 percent, reaching a high of Rs. 556.10 from its opening price of Rs. 535.55. 

What Happened

Hindustan Copper Ltd, engaged in the entire value chain of copper production, is the nation’s only vertically integrated producer,  are in the spotlight as it has rallied upto 4 percent in the day’s trade.

Reason for the Rally

The state-owned mining company announced to the exchanges that it has been named the ‘Preferred Bidder’ for a new copper block in Madhya Pradesh. The company took part in the state government’s e-auction for the grant of a mining lease and composite license for the Baghwari-Khirkhori copper and associated mineral block.

According to the filing, the forward e-auction concluded successfully on January 22, with Hindustan Copper emerging as the frontrunner by offering the highest final price. This acquisition supports the company’s broader strategy to secure raw material supplies, a crucial step as global demand for copper continues to rise.

Financials& Others

The company’s revenue rose by 38.57 percent from Rs. 518 crore in September 2024 to Rs. 718 crore in September 2025. Meanwhile, the Net profit rose from  Rs. 102 crore to  Rs. 184 crore during the same period.

The company demonstrates strong financial performance, with a Return on Capital Employed (ROCE) of 23.7% and a Return on Equity (ROE) of 18.6%, indicating efficient use of both debt and equity to generate profits. Its debt-to-equity ratio of 0.05 reflects a very low reliance on debt. Additionally, the company has been maintaining a healthy dividend payout of 30.2%, highlighting its commitment to returning value to shareholders while sustaining growth.

Hindustan Copper Limited (HCL) is a Schedule-‘A’ Mini-Ratna Central Public Sector Enterprise (CPSE) under India’s Ministry of Mines, incorporated in 1967. As the nation’s only vertically integrated copper producer covering mining, smelting, and refining, HCL operates major mines and plants in Madhya Pradesh, Jharkhand, Rajasthan, and Gujarat. 

The company now has a 66.14 percent Government of India (GoI) stake, and it is the sole vertically integrated producer of refined copper in India, encompassing mining, ore beneficiation, smelting, refining, and rod extrusion. The company owns all operating copper ore mining leases in India and controls access to approximately 45 percent of the country’s copper ore reserves and resources.

In India, Hindustan Copper Ltd. is the only domestic copper mining company. Major copper smelters and refiners include Hindalco Industries Ltd. (Birla Copper) with a refined copper capacity of 5 lakh tpa, Vedanta Limited (Sterlite Copper) with 2.16 lakh tpa capacity (excluding the Tuticorin unit, with only the Silvasa refinery operational), and Adani Group’s Kutch Copper Ltd., whose Phase-I plant has a 5 lakh tpa capacity and is currently undergoing commissioning for its smelter and refinery.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Copper stock jumps 4% after securing new copper block in Madhya Pradesh appeared first on Trade Brains.