Hindustan Copper Share
The month of September has been very beneficial for the investors of Hindustan Copper. This government company, which is the only complete -owned producer of copper in India, has performed tremendously in the stock market in the last few days. Only in this month, its stock has given more than 40% returns. In Thursday’s trading, the shares of Hindustan Copper have seen a tremendous rise and the stocks rose by 7% to Rs 330.40.
Hindustan Copper shares are the reason for the rise?
There are many strong reasons behind this edge. The biggest reason is the rapid jump in international prices of copper. Recently, copper prices on the London Metal Exchange (LM) reached a 15 -month high of $ 10,400 per metric tonnes. The main reason for this is a sudden major accident in Indonesia’s Grasberg mine, which has shaken the global supply of copper.
Due to this accident, the supply from the world’s second largest copper mine has stopped. As a result, there was a possibility of shortage of copper in the market, which led to a rise in its prices. Copper is an important metal that is largely used in areas such as electronics, renewable energy and artificial intelligence. The demand remains, but the jerk in the supply pushed the prices up.
How did Hindustan Copper get benefit?
Hindustan Copper is the only Indian company that does the entire process of copper production itself, ie from mining to refining. When copper is expensive in the international market, both the company’s earnings and profits increase. Apart from this, the company has recently renewed the mining lease for the next 20 years for the Rakha copper mine of Jharkhand. This means that now the company can start production again from this mine, which will increase its production capacity and revenue.
What is the signal for investors?
In September, the stock of Hindustan Copper has given a return of about 40%. If this speed persists till the end of the month, it will be the biggest monthly jump after December 2023. It jumped about 58% in December 2023. Apart from this, the company has recently entered into an agreement with Oil India, under which both companies will jointly work in the discovery and development of copper and other important minerals.