Hindustan Copper share price gains over 3% amid rising copper prices. Should you buy?

Hindustan Copper share price rallied over 3% on Wednesday amid heavy buying momentum. The PSU stock surged as much as 3.76% to ₹237.20 apiece on the BSE.

Trading volumes for Hindustan Copper shares were also higher than usual, with approximately 62 lakh equity shares exchanging hands on March 26, compared to its one-month average trading volume of 59 lakh shares.

Hindustan Copper, a state-owned enterprise, is a fully integrated copper producer engaged in the entire value chain, from mining to the production of saleable copper products. The company is currently focusing on mining and beneficiation operations, with copper concentrate being its primary output.

Copper Prices Surge

The rally in Hindustan Copper shares coincides with a sharp increase in global copper prices. Copper futures on New York’s COMEX exchange hit a record high as traders factored in the potential imposition of steep import tariffs by former U.S. President Donald Trump on the industrial metal. Additionally, reports of halted shipments from top copper producer Chile further fueled the price surge.

On COMEX, copper futures rose to $5.2145 per pound, surpassing the previous record of $5.199 set on May 20. The front-month contract has surged 29% year-to-date. Copper prices on the London Metal Exchange (LME) rose 1.2% to $10,082 per ton, while on the Multi Commodity Exchange (MCX), copper prices reached an intraday high of ₹922.20 per kg.

Impact of Potential US Tariffs on Copper

According to a Bloomberg report, the US may impose tariffs on copper imports in the coming weeks, ahead of the expected deadline for a decision. Trump has proposed levying tariffs of up to 25% on all copper imports.

The uncertainty surrounding global copper trade has driven investor interest in Indian copper stocks, including Hindustan Copper. Analysts suggest that Indian copper manufacturers could benefit from these tariffs, as disruptions in global supply chains may lead to increased demand for non-US suppliers.

Should you buy Hindustan Copper shares?

Hindustan Copper share price has gained over 5% in the past month but remains down 7% on a year-to-date (YTD) basis. Over the past six months, the stock has declined by more than 33%, while it has lost 19% in the last year.

Despite recent corrections, Hindustan Copper shares have delivered exceptional long-term returns, surging nearly 140% over the past two years and an impressive multibagger return of 1,035% over the past five years.

Hindustan Copper share price has been consolidating and analysts believe the PSU stock is eying breakout above the ₹235 level.

“After a buying climax at ₹414, Hindustan Copper witnessed a sharp 52.87% correction over 41 weeks. Over the last six weeks, Hindustan Copper stock has been consolidating in a tight range of ₹200 - 235, signaling potential accumulation. A breakout above ₹235 is highly likely, which could trigger a dead cat bounce, pushing the stock toward the ₹277 level,” said Anshul Jain, Head of Research at Lakshmishree Investment.

He advises traders to watch for a strong volume breakout to confirm momentum.

“While the short-term outlook appears bullish, caution is warranted as overall structure remains weak,” Jain said.

At 12:25 PM, Hindustan Copper shares were trading 0.57% higher at ₹229.90 apiece on the BSE, commanding a market capitalisation of over ₹22,231 crore.

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.