scorecardresearch
Why Hindustan Copper shares rose 11% amid a falling market today

Why Hindustan Copper shares rose 11% amid a falling market today

The midcap stock has delivered 272 per cent return to its shareholders in the last 12 months and has risen 104 per cent since the beginning of the year.

Why Hindustan Copper shares rose 11% amid a falling market today Why Hindustan Copper shares rose 11% amid a falling market today

Shares of Hindustan Copper Limited rose 11 per cent to hit an intraday high of Rs 133.70 on BSE after mining giant Vedanta Group said it is planning to bid for buying the government's stake in the state-owned company as and when it is put up for privatisation.

"Yes we are looking (at) Hindustan Copper. We are doing the due diligence...The dates have not come...As soon as they announce the date, things will be much more exciting and people will start believing that the process is going on in India," its billionaire founder Anil Agarwal told PTI.

The stock ended 4.17 per cent higher at Rs 124.95 against the previous close of Rs 119.95. With a market capitalisation of more than Rs 12,000 crore, the shares stand higher than 5 day, 20 day and 200 day moving averages, but lower than 50 day and 100 day moving averages.

The midcap stock has delivered 272 per cent return to its shareholders in the last 12 months and has risen 104 per cent since the beginning of the year.

In September, the government sold 6.35 per cent stake in Hindustan Copper Ltd to non-retail bidders who participated in the company's offer for sale (OFS) on the first day of the sale.

After the transaction, the government's stake in the company declined to 66.40 per cent from 72.76 per cent earlier.

According to MarketsMojo, the company's ability to service its debt is weak with a poor EBIT to interest (avg) ratio of -0.26. With ROCE of 5.2, it has a very expensive valuation with a 5.7 enterprise value to capital employed.

Also, institutional investors decreased their stake by 2.63% over the previous quarter and collectively hold 14.16 per cent of the company.

Incorporated in November 1967, Hindustan Copper 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.